Grower Supply Corporation holds 85 percent of Schultz Company's voting common stock. At the end of 20X4, Schultz purchased 30 percent of Grower Supply's stock. Schultz records dividends received from Grower Supply as nonoperating income. In 20X5, Grower Supply and Schultz reported operating income (excluding any dividend income or income from subsidiaries) of $112,000 and $50,000 and paid dividends of $70,000 and $30,000, respectively

Grower Supply Corporation holds 85 percent of Schultz Company's voting common stock. At the end of 20X4, Schultz purchased 30 percent of Grower Supply's stock. Schultz records dividends received from Grower Supply as nonoperating income. In 20X5, Grower Supply and Schultz reported operating income (excluding any dividend income or income from subsidiaries) of $112,000 and $50,000 and paid dividends of $70,000 and $30,000, respectively

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Grower Supply Corporation holds 85 percent of Schultz Company's voting common stock. At the end of 20X4, Schultz purchased 30
percent of Grower Supply's stock. Schultz records dividends received from Grower Supply as nonoperating income. In 20X5, Grower
Supply and Schultz reported operating income (excluding any dividend income or income from subsidiaries) of $112,000 and $50,000
and paid dividends of $70,000 and $30,000, respectively.
Required:
Compute the amounts reported as consolidated net income and income assigned to the controlling interest for 20X5 under the
treasury stock method.
Consolidated net income
Income to controlling interest

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