19. Johnson Co. owns 70% of the voting common stock of Sandstone Corp. During 2021, Sandstone had revenues of $2,400,000 and expenses of $1,600,000. The AAP amortization totaled $75,000 in 2021.

The non-controlling interest's share of the earnings of Sandstone Corp. is calculated to be:

a. $217,500

b. $240,000

c. $262,500

d. $382,500

20. Johnson Co. owns 70% of the voting common stock of Sandstone Corp. During 2021, Sandstone had revenues of $2,400,000 and expenses of $1,600,000. The AAP amortization totaled $75,000 in 2021.

What is the net effect of the inclusion of Sandstone on net income to the controlling interests for 2021?

a. $342,500

b. $485,000

c. $507,500

d. $725,000