Winner Corporation acquired 80 percent of the common shares and 70 percent of the preferred shares of First Corporation at underlying book value on January 1, 20X9. At that date, the fair value of the noncontrolling interest in First's common stock was equal to 20 percent of the book value of its common stock. First's balance sheet at the time of acquisition contained the following balances:

Total Assets	$600,000	Total Liabilities	$90,000
		Preferred Stock	100,000
		Common Stock	150,000
		Retained Earnings	260,000
Total Assets	$600,000	Total Liabilities and Equities	$600,000

The preferred shares are cumulative and have a 10 percent annual dividend rate and are four years in arrears on January 1, 20X9. All of the $5 par value preferred shares are callable at $6 per share. During 20X9, First reported net income of $100,000 and paid no dividends.

1.

Required information

Based on the preceding information, what is First's contribution to consolidated net income for 20X9?

a. $80,000

b. $100,000

c. $90,000

d. $50,000

Micron Corporation owns 75 percent of the common shares and 60 percent of the preferred shares of Stanley Company, all acquired at underlying book value on January 1, 20X8. At that date, the fair value of the noncontrolling interest in Stanley's common stock was equal to 25 percent of the book value of its common stock. The balance sheets of Micron and Stanley immediately after the acquisition contained these balances:

	Micron Corporation	Stanley Company
Cash and Receivables	$80,000	$40,000
Inventory	90,000	60,000
Buildings and Equipment (net)	250,000	200,000
Investment in Stanley Preferred Stock	60,000
Investment in Stanley Common Stock	120,000
Total Assets	$600,000	$300,000
Liabilities	$150,000	$40,000
Preferred stock		100,000
Common Stock	200,000	100,000
Retained Earnings	250,000	60,000
Total Liabilities and Equities	$600,000	$300,000

Stanley's preferred stock pays a 12 percent dividend and is cumulative. For 20X8, Stanley reports net income of $40,000 and pays no dividends. Micron reports income from its separate operations of $75,000 and pays dividends of $30,000 during 20X8.

2.

Required information

Based on the preceding information, what is the total noncontrolling interest reported in the consolidated balance sheet as of January 1, 20X8?

a. $80,000

b. $40,000

c. $50,000

d. $60,000

3.

Required information

Based on the preceding information, what is the total stockholders' equity reported in the consolidated balance sheet as of January 1, 20X8?

a. $450,000

b. $530,000

c. $490,000

d. $370,000

4.

Required information

Based on the preceding information, what amount is reported as preferred stock outstanding reported in the consolidated balance sheet as of January 1, 20X8?

a. $0

b. $40,000

c. $50,000

d. $44,000