Question
The affiliation structure for Pad Corporation and its subsidiaries is diagrammed as follows: 9.4-7 Full Alternative Text The incomes and dividends for the affiliates for
The affiliation structure for Pad Corporation and its subsidiaries is diagrammed as follows:
9.4-7 Full Alternative Text
The incomes and dividends for the affiliates for 2016 are (in thousands):
| Pad | Sal | Axe | Ban |
---|---|---|---|---|
Separate income (loss) | $500 | $300 | $150 | $(20) |
Dividends | 200 | 140 | 50 |
Additional Information
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Axe sold land to Sal during 2016 at a $20,000 gain. The land is still held by Sal.
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Sal is amortizing a previously unrecorded patent of Axe at the rate of $12,000 per year. (Total amortization is $20,000.)
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Pad is amortizing a previously unrecorded patent acquired from Sal with a book value of $360,000 over its remaining nine-year life.
Required
Prepare a schedule to compute controlling and noncontrolling interest shares of consolidated net income for each subsidiary for 2016.
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