1. Paijo Corporation owns 80% of the voting common stock of Agus Corporation. Paijo owns 60% of the voting common stock of Bagio Corporation. Agus owns 20% of the voting common stock of Bagio. There are no cost/book value/fair value differentials to consider. The separate net incomes (excluding investment income) of these affiliated companies for 2020 are: Paijo $300,000 Agus 160,000 Bagio 120,000

Calculate: (a) controlling interest share of consolidated net income and (b) noncontrolling interest shares for Paijo Corporation and Subsidiaries for 2020. 2. Pandi Corporation owns 90% of Abdi Corporation, Abdi Corporation owns 85% of Bandi Corporation, and Bandi Corporation owns 5% of Abdi Corporation. The separate net incomes (excluding investment income) of Pandi, Abdi, and Bandi are $100,000, $40,000, and $55,000, respectively. Assume the investments were acquired at a cost equal to the book value of each investment, which also equals the fair value. a. Calculate revised net incomes for Pandi, Abdi, and Bandi by using the conventional method. b. Determine the controlling interest share of consolidated net income and the noncontrolling interest shares.