NewLook Company owns all of the stock of Harlow Corporation and 80% of the stock of Tamblyn Corporation. NewLook earned net income of $500,000; Harlow earned $130,000; and Tamblyn earned $115,000. NewLook's consolidated income statement would report net income of:

Question

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NewLook's consolidated income statement would report net income of $722,000. This is calculated by adding the net income of NewLook ($500,000), Harlow ($130,000), and 80% of Tamblyn's net income ($115,000 x 0.80 = $92,000).

NewLook Company Owns All of the Stock of Harlow Corporation