Question
Please, explain how to do this. Pint Corporation holds 70 percent of Size Company's voting common stock. On January 1, 20X3, Size paid $500,000 to
Please, explain how to do this.
Pint Corporation holds 70 percent of Size Company's voting common stock. On January 1, 20X3, Size paid $500,000 to acquire a building with a 10-year expected economic life. Size uses straight-line depreciation for all depreciable assets. On December 31, 20X8, Pint purchased the building from Size for $180,000. Pint reported income, excluding investment income from Size, of $140,000 and $162,000 for 20X8 and 20X9, respectively. Size reported net income of $30,000 and $45,000 for 20X8 and 20X9, respectively.
Based on the preceding information, the amount of income assigned to the controlling shareholders in the consolidated income statement for 20X8 will be:
$190,000. |
$170,000. |
$150,000. |
$175,000 |
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