Working backward from consolidated income statements. Dealco Corporation published a consolidated income statement for the year, shown in Exhibit 13.10. The unconsolidated affiliate retained 25% of its earnings of $140 million during the year, having paid out the rest as dividends. The consolidated subsidiary earned $280 million during the year and declared no dividends.
a. What percentage of the unconsolidated affiliate does Dealco Corporation own?
b. What amount of dividends did Dealco Corporation receive from the unconsolidated affiliate during the war?
c. What percentage of the consolidated subsidiary does Dealco Corporationown?

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Dealco Corporation Consolidated Income Statement (Exercise 20) EXHIBIT 13.10 REVENUES Sales ... Equity in Earnings of Unconsolidated Affiliate.. $1,400,000 56,000 Total Revenues . $1,456,000 EXPENSES Cost of Goods Sold (excluding depreciation) ... Administrative Expense.. Depreciation Expense $ 910,000 140,000 161,000 Amortization of Gondwill . 7,000 Income Tax Expenses: Currently Payable. $58,800 Deferred.... 14,000 72,800 $1,290,800 $ 165,200 Total Expenses. Income of the Consolidated Group.. Less Noncontrolling Interest in Earnings of Consolidated Subsidiary Net Income to Shareholders. (42,000) $ 123,200