CH7Q12

Boulder, Inc., obtained 90 percent of Rock Corporation on January 1, 2019. Annual amortization of $22,300 is applicable on the allocations of Rock's acquisition-date business fair value. On January 1, 2020, Rock acquired 75 percent of Stone Company's voting stock. Excess business fair-value amortization on this second acquisition amounted to $8,600 per year. For 2021, each of the three companies reported the following information accumulated by its separate accounting system. Separate operating income figures do not include any investment or dividend income.

Boulder Rock Stone Separate Operating Income $263,300 91,300 156,000 Dividends Declared $111,000 21,000 48,000 Required: a. What is consolidated net income for 2021? b. How is 2021 consolidated net income distributed to the controlling and noncontrolling interests? Amount a. b. Consolidated net income for 2021 Controlling interest in consolidated net income Noncontrolling interest in consolidated net income