Yukon Electrical Company owns all of the stock of Simmons Corporation and 80% of the stock ofI-Tek Corporation. In 2020, Yukon earned net income of $450,000, Simmons earned $120,000, and I-Tek earned $180,000. Yukon's consolidated income statement would report consolidated net income of:

Question

Quizplus · Accepted Answer

Yukon's consolidated net income includes 100% of its own income ($450,000), 100% of Simmons' income ($120,000), and 80% of I-Tek's income (80% of $180,000 = $144,000). Adding these together gives $450,000 + $120,000 + $144,000 = $714,000.

Yukon Electrical Company Owns All of the Stock of Simmons