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Assume that one company owns 70 percent of the common stock of another company, with the investment originally purchased at the book value the shares
Assume that one company owns 70 percent of the common stock of another company, with the investment originally purchased at the book value the shares acquired. For the current year, the parent reports separate operating income of $300,000, and the subsidiary reports net income of $160,000; each company declares dividends of $50,000 What will the amount of consolidated net income reported in the consolidate income statement for the year?
a) $460,000.
b) $412,000
c) $377.000
d) $327.000
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