The affiliation structure for Pad Corporation and its subsidiaries is diagrammed as follows:

The incomes and dividends for the affiliates for 2016 are (in thousands):

ADDITIONAL INFORMATION
1. Axe sold land to Sal during 2016 at a $20,000 gain. The land is still held by Sal.
2. Sal is amortizing a previously unrecorded patent of Axe at the rate of $12,000 per year. (Total amortization is $20,000.)
3. 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.

Transcribed Image Text:

Pad 90% Sal 60% 70% Axe Ban Pad $500 200 Sal Axe $150 50 Baio $(20) Separate income (loss) Dividends $300 140