On January 1,20X9,A Company acquired 85 percent of B Company's voting common stock for $425,000.At that date,the fair value of the noncontrolling interest of B Company was $75,000.Immediately after A Company acquired its ownership,B Company acquired 75 percent of C Company's stock for $150,000.The fair value of the noncontrolling interest of C Company was $50,000 at that date.At January 1,20X9,the stockholders' equity sections of the balance sheets of the companies were as follows:
During 20X9,A Company reported operating income of $175,000 and paid dividends of $50,000.B Company reported operating income of $125,000 and paid dividends of $40,000.C Company reported net income of $100,000 and paid dividends of $25,000.
-Based on the information provided,what amount of consolidated net income will A Company report for 20X9?

Question

On January 1,20X9,A Company acquired 85 percent of B Company's voting common stock for $425,000.At that date,the fair value of the noncontrolling interest of B Company was $75,000.Immediately after A Company acquired its ownership,B Company acquired 75 percent of C Company's stock for $150,000.The fair value of the noncontrolling interest of C Company was $50,000 at that date.At January 1,20X9,the stockholders' equity sections of the balance sheets of the companies were as follows:
  During 20X9,A Company reported operating income of $175,000 and paid dividends of $50,000.B Company reported operating income of $125,000 and paid dividends of $40,000.C Company reported net income of $100,000 and paid dividends of $25,000.
-Based on the information provided,what amount of consolidated net income will A Company report for 20X9?

Quizplus · Accepted Answer

The Answer of On January 1,20X9,A Company acquired 85 percent of B Company's voting common stock for $425,000.At that date,the fair value of the noncontrolling interest of B Company was $75,000.Immediately after A Company acquired its ownership,B Company acquired 75 percent of C Company's stock for $150,000.The fair value of the noncontrolling interest of C Company was $50,000 at that date.At January 1,20X9,the stockholders' equity sections of the balance sheets of the companies were as follows:
  During 20X9,A Company reported operating income of $175,000 and paid dividends of $50,000.B Company reported operating income of $125,000 and paid dividends of $40,000.C Company reported net income of $100,000 and paid dividends of $25,000.
-Based on the information provided,what amount of consolidated net income will A Company report for 20X9?

On January 1,20X9,A Company Acquired 85 Percent of B Company's