Page Company and Orange Company have separate incomes of $280,000 and $480,000,respectively.They had intercompany purchases and sales of $80,000 and intercompany interest of $4,000.Consolidated net income is

Question

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Consolidated net income = (Page Company's income + Orange Company's income) + Intercompany interest - Intercompany purchases and sales= ($280,000 + $480,000) + $4,000 - $80,000= $760,000

Page Company and Orange Company Have Separate Incomes of $280,000