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

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