On January 1st. 2020, X purchased 25% of the outstanding common shares of Y and thereby obtained significant influence over the policy decisions of Y.On August 1st. 2020, Y purchased another 35% of Y's outstanding common shares and thereby obtained control over the policy decisions of Y.X accounts for the investment using the cost method and reported net income of $1,000,000.Y's reported net income in the year was $240,000.Neither company paid dividends in the year.

What is the consolidated net income for the year ended December 31,2020?

$1,095,000

ii.$1,000,000

iii.$1,132,000

iv$1,020,000

When preparing the consolidated balance sheet as at December 31,2020, how should non-controlling interest be calculated?

By taking 25% of Y's income for the first 7 months of the year

ii.By taking 55% of Y's income for the last 5 months of the year

iii.By taking 40% of Y's income for the year

ivBy taking 40% of Y's shareholders' equity at the end of the year.

On January 1st.2020, X Company invested $100,000 for 15% of the common shares of the Y Company.X accounts for this long-term investment under the cost method.Y reported net income of $80,000 and declared a dividend of $90,000 during 2020.At the end of 2020, the market value of X's investment in Y was $95,000.The decline in value is believed to be temporary.How much income should be reported by X in 2020 related to its investment in Y?

$7,000

ii.$8,500

iii.$12,000

iv$18,500