16. On June 30, year 1, Purl Corp. issued 150.000 shares of its $20 par common stock for which it received all of Scott Corp.'s common stock. The fair value of the common stock issued is equal to the book value of Scott Corp.'s net assets. Both corporations continued to operate as separate businesses, maintaining accounting records with years ending December 31. Net income from separate company operations and dividends paid were Purl Scott Net income for six months ended - Jun 30 year 1 $750,000 $225,000 Net income for six months ended - Dec 31, year 1 825,000 375,000 Dividends paid - March 25, year 1 950,000 Dividends paid - November 15, year 1 300,000 On December 31, year 1, Scott held in its inventory merchandise acquired from Purl on December 1, year 1, for $150,000, which included a $45,000 markup. In the year 1 consolidated income statement, net income should be reported at a. $1,650,000 b. $1,905,000 c. $1,950,000 d. $2,130,000 17. Clark Co. had the following transactions with affiliated parties during year 1: Sales of $60,000 to Dean, Inc., with $20.000 gross profit. Dean had $15,000 of this inventory on hand at year end. Clark owns a 15% interest in Dean and does not exert significant influence. Purchases of raw materials totaling $240,000 from Kent Corp., a wholly owned subsidiary. Kent's gross profit on the sale was $48,000. Clark had $15,000 of this inventory remaining on December 31, year 1. Before eliminating entries, Clark had consolidated current assets of $320,000. What amount should Clark report in its December 31, year 1 consolidated balance sheet for current assets? a. $320,000 b. $317,000 c. $308,000 d. $303,000