Kane acquired Tucson Company on 1/1/21. This acquisition results in $1,000 in excess consideration over book value, which is being amortized at $20 per year. There was no goodwill in the combination. Tucson reported net income of $400 in 2021 and paid dividends of $100.

Assume the initial value method is applied. What is the income from Tucson that Kane will report on its internal accounting records as a result of Tucsons operations?

Multiple Choice

• $400

• $300

• $380

• $100

• $210