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Need step by step solutions, answer already provided The following information pertains to the shareholdings of an affiliated group of companies. The respective ownership interest

Need step by step solutions, answer already provided

The following information pertains to the shareholdings of an affiliated group of companies. The respective ownership interest of each company is outlined below.

A Inc.:

A Inc. owns 75% of J Inc. and 60% of G Inc.

J Inc.:

J Inc. owns 60% of D Inc. and 20% of G Inc.

G Inc.:

G Inc. owns 10% of D Inc. and 80% of Y Inc.

All intercompany investments are accounted for using the equity method.

The Net Incomes for these companies for the year ended December 31, 2018 were as follows:

A Inc. $1,000,000

J Inc. $200,000

G Inc.$600,000

D Inc. $300,000

Y Inc. $100,000

Unrealized intercompany profits (pre-tax) earned by the various companies for the year ended December 31, 2018 are shown below:

G Inc. $10,000

Y Inc. $10,000

J Inc. $20,000

All companies are subject to a 25% tax rate.

a) How much is A Inc.'s Consolidated Net Income for 2018? ($2,170,000)

b) How much is the non-controlling interest in A Inc.'s Consolidated Net Income for 2018? ($$373,875)

c) What is the Consolidated Net Income for the year attributable to the shareholders of A Inc.? ($1,796,125.)

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