E 9-9 Calculate consolidated net income (conventional method, no complications)

Pan Corporation owns an 80 percent interest in Sol Company and Sol owns a 30 percent interest in Pan, both acquired at a fair value equal to book value. Separate incomes (not including investment income) of the two affiliates for 2016 are:

Pan $6,000,000 Sol $3,000,000 Indirect and Mutual Holdings 327 REQuIRED: Compute controlling share of consolidated net income for 2016 using the conventional (equation)

approach.