Use the following information to answer the question(s) below.

Pace Corporation owns 70% of Abaza Corporation and 60% of Babon Corporation. Abaza Corporation owns 20% of Babon Corporation. Pace's investment in Abaza was consummated in one transaction at a purchase price $20,000 in excess of the book value. Pace's purchase of Babon was made in one transaction at a price $30,000 above book value. Abaza's investment in Babon was completed in one transaction at a purchase price $10,000 in excess of the book value. The purchase price differential for all three investments was attributable to goodwill. (There were no fair value/book value differences in assets and liabilities for each investment.) Pace's separate net income for the current year is $100,000. Abaza's separate net income is $190,000, which includes a $10,000 unrealized loss on the sale of land to Pace. Babon's separate net income is $150,000. Separate net incomes exclude investment income.

-The controlling interest share of consolidated net income for the current year is
A)$341,000.
B)$348,400.
C)$351,000.
D)$355,000.

Question

Use the following information to answer the question(s) below.

Pace Corporation owns 70% of Abaza Corporation and 60% of Babon Corporation. Abaza Corporation owns 20% of Babon Corporation. Pace's investment in Abaza was consummated in one transaction at a purchase price $20,000 in excess of the book value. Pace's purchase of Babon was made in one transaction at a price $30,000 above book value. Abaza's investment in Babon was completed in one transaction at a purchase price $10,000 in excess of the book value. The purchase price differential for all three investments was attributable to goodwill. (There were no fair value/book value differences in assets and liabilities for each investment.) Pace's separate net income for the current year is $100,000. Abaza's separate net income is $190,000, which includes a $10,000 unrealized loss on the sale of land to Pace. Babon's separate net income is $150,000. Separate net incomes exclude investment income.

-The controlling interest share of consolidated net income for the current year is
A)$341,000.
B)$348,400.
C)$351,000.
D)$355,000.

Quizplus · Accepted Answer

11ea84d4_86d0_90fb_83dc_172597973952_TB3014_00 Plus: Unrealized loss on
 11ea84d4_86d0_90fc_83dc_c784c8946b0b_TB3014_00 Allocate Babon's income:
 11ea84d4_86d0_b80d_83dc_db9b48b8421a_TB3014_00 Allocate Abaza's net income
 11ea84d4_86d0_b80e_83dc_7784863d864e_TB3014_00 Controlling interest share
 11ea84d4_86d0_b80f_83dc_7571017a943b_TB3014_00

Use the Following Information to Answer the Question(s) Below