B Co. owned 70% of the voting common stock of C Corp.; C Corp. owned 20% of B Co. For 2011, B Co. and C Corp. reported net income (not including the investment) of $600,000 and $300,000, respectively. B Co. and C Corp. paid dividends of $80,000 and $60,000, respectively.
Required:
Prepare a schedule showing B Co.'s share of consolidated net income for 2011 using the treasury stock approach.

Question

Quizplus · Accepted Answer

The Answer of B Co. owned 70% of the voting common stock of C Corp.; C Corp. owned 20% of B Co. For 2011, B Co. and C Corp. reported net income (not including the investment) of $600,000 and $300,000, respectively. B Co. and C Corp. paid dividends of $80,000 and $60,000, respectively.
Required:
Prepare a schedule showing B Co.'s share of consolidated net income for 2011 using the treasury stock approach.

B Co Owned 70% of the Voting Common Stock of C