Keefe, Inc., a calendar-year corporation, acquires 70% of George Company on September 1, 2019, and an additional 10% on January 1, 2020.Total annual amortization of $6,000 relates to the first acquisition.George reports the following figures for 2020: Without regard for this investment, Keefe independently earns $300,000 in net income during 2020.
All net income is earned evenly throughout the year.
What is the controlling interest in consolidated net income for 2020?

Question

Keefe, Inc., a calendar-year corporation, acquires 70% of George Company on September 1, 2019, and an additional 10% on January 1, 2020.Total annual amortization of $6,000 relates to the first acquisition.George reports the following figures for 2020:  Without regard for this investment, Keefe independently earns $300,000 in net income during 2020.
All net income is earned evenly throughout the year.
What is the controlling interest in consolidated net income for 2020?

Quizplus · Accepted Answer

The Answer of Keefe, Inc., a calendar-year corporation, acquires 70% of George Company on September 1, 2019, and an additional 10% on January 1, 2020.Total annual amortization of $6,000 relates to the first acquisition.George reports the following figures for 2020:  Without regard for this investment, Keefe independently earns $300,000 in net income during 2020.
All net income is earned evenly throughout the year.
What is the controlling interest in consolidated net income for 2020?