Question 7 (3 points) On 01/01/Y1, P Company acquired 80% of S Company's common stock and 40% of its non-voting, cumulative preferred stock. The consideration transferred by P was $1,200,000 for the common and $124,000 for the preferred. Any excess acquisition-date fair value over book value is considered goodwill. The capital structure of Simmediately prior to the acquisition is: Common stock, $10 par value (50,000 shares outstanding) $500,000 Preferred stock, 6% cumulative, $100 par value, 3,000 shares outstanding 300,000 Additional paid in capital 200,000 Retained earnings 500,000 Total stockholders' equity $1.500.000 If s' net income is $100,000 in the year following the acquisition the portion allocated to the common stock (residual amount) is $92,800. the preferred stock dividend will be ignored in non-controlling interest in subsidiary net income because P owns the non-controlling interest of preferred stock the non-controlling interest in S' net income will be $27,200 $10,800 preferred stock dividend will be subtracted from net income attributed to common stock in arriving at non-controlling interest in subsidiary income. O the non-controlling interest in subsidiary net income is $30,800