Pony Corporation acquired 90 percent of Saddle Corporation's common stock on September 30,20X8 for $225,000.At that date,the fair value of the noncontrolling interest was $25,000.On January 1,20X8,Saddle reported the following stockholders' equity balances:
Saddle reported net income of $80,000 in 20X8,earned uniformly throughout the year,and declared and paid dividends of $10,000 on June 30 and $30,000 on December 31,20X8.Pony reported retained earnings of $250,000 on January 1,20X8,and had 20X8 income of $120,000 from its separate operations.Pony paid dividends of $50,000 on December 31,20X8.Pony accounts for its investment in Saddle Corporation using the fully adjusted equity method.
-Based on the information provided,what is the consolidated income to the controlling interest reported for the year 20X8?
A)$192,000
B)$138,000
C)$140,000
D)$120,000

Question

Pony Corporation acquired 90 percent of Saddle Corporation's common stock on September 30,20X8 for $225,000.At that date,the fair value of the noncontrolling interest was $25,000.On January 1,20X8,Saddle reported the following stockholders' equity balances:
  Saddle reported net income of $80,000 in 20X8,earned uniformly throughout the year,and declared and paid dividends of $10,000 on June 30 and $30,000 on December 31,20X8.Pony reported retained earnings of $250,000 on January 1,20X8,and had 20X8 income of $120,000 from its separate operations.Pony paid dividends of $50,000 on December 31,20X8.Pony accounts for its investment in Saddle Corporation using the fully adjusted equity method.
-Based on the information provided,what is the consolidated income to the controlling interest reported for the year 20X8?
A)$192,000 
B)$138,000 
C)$140,000 
D)$120,000

Quizplus · Accepted Answer

The Answer of Pony Corporation acquired 90 percent of Saddle Corporation's common stock on September 30,20X8 for $225,000.At that date,the fair value of the noncontrolling interest was $25,000.On January 1,20X8,Saddle reported the following stockholders' equity balances:
  Saddle reported net income of $80,000 in 20X8,earned uniformly throughout the year,and declared and paid dividends of $10,000 on June 30 and $30,000 on December 31,20X8.Pony reported retained earnings of $250,000 on January 1,20X8,and had 20X8 income of $120,000 from its separate operations.Pony paid dividends of $50,000 on December 31,20X8.Pony accounts for its investment in Saddle Corporation using the fully adjusted equity method.
-Based on the information provided,what is the consolidated income to the controlling interest reported for the year 20X8?
A)$192,000 
B)$138,000 
C)$140,000 
D)$120,000

Pony Corporation Acquired 90 Percent of Saddle Corporation's Common Stock