Question
A Corporation owns 90 percent of B Corporation's common stock and 60 percent of C Corporation's common stock. Additionally, B Corporation owns 40 percent of
A Corporation owns 90 percent of B Corporation's common stock and 60 percent of C Corporation's common stock. Additionally, B Corporation owns 40 percent of C Corporation's common stock. The acquisitions were made at book values. The following information is available for 2020:
|
| A | B | C |
|
| Operating Income (before equity income) | 120,000 | 60,000 | 40,000 |
|
| Dividends declared | 30,000 | 20,000 | 10,000 |
|
Based on the information provided,
- What amount of consolidated net income will be reported for 2020?
- What amount of income will be assigned to the noncontrolling interest in the 2020 consolidated income statement?
- What amount of income will be assigned to the controlling interest in the 2020 consolidated income statement?
- What amount will be reported as dividends declared in 2020 consolidated retained earnings statement?
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
