Big Corporation receives management consulting services from its 92 percent owned subsidiary, Small Inc. During 20X7, Big paid Small $125,432 for its services. For the year 20X8, Small billed Big $140,000 for such services and collected all but $7,900 by year-end. Small's labor cost and other associated costs for the employees providing services to Big totaled $86,000 in 20X7 and $121,000 in 20X8. Big reported $2,567,000 of income from its own separate operations for 20X8, and Small reported net income of $695,000.

1. Based on the preceding information, what amount of consolidated net income should be reported in 20X8?

a. $3,262,000

b. $4,050,000

c. $3,254,100

d. $3,122,000

2. Based on the preceding information, what amount of income should be assigned to the noncontrolling shareholders in the consolidated income statement for 20X8?

a. $47,700

b. $44,400

c. $55,600

d. $60,000

3. Based on the preceding information, what amount of receivable/payable should be eliminated in the 20X8 consolidated financial statements?

a. $125,432

b. $7,900

c. $5,560

d. $140,000