Clarke Company owns all of the stock of Patterson Corporation and 90% of the stock of Tyra Corporation. Clarke Company earned net income of $750,000; Patterson earned $230,000; and Tyra earned $420,000. Clarke Company's consolidated income statement would report net income of:

Question

Quizplus · Accepted Answer

Clarke Company's consolidated net income includes its own net income plus 100% of Patterson's net income and 90% of Tyra's net income. Therefore, $750,000 + $230,000 + (90% of $420,000) = $1,358,000.

Clarke Company Owns All of the Stock of Patterson Corporation