Clarke Company owns all of the stock of Patterson Corporation and 80% of the stock of Tyra Corporation.Clarke Company earned net income of $750,000; Patterson earned $200,000; and Tyra earned $100,000.Clarke Company's consolidated income statement would report net income of:

Question

Quizplus · Accepted Answer

Clarke Company's consolidated net income includes its own net income and the full net income of Patterson, plus 80% of Tyra's net income. Thus, $750,000 (Clarke) + $200,000 (Patterson) + $80,000 (80% of Tyra's $100,000) = $1,030,000.

Clarke Company Owns All of the Stock of Patterson Corporation