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

Quizplus · Accepted Answer

Consolidated net income = NewLook's net income + Harlow's net income + (80% x Tamblyn's net income)
Consolidated net income = $500,000 + $130,000 + (0.8 x $115,000)
Consolidated net income = $722,000

NewLook Company Owns All of the Stock of Harlow Corporation