P Corporation acquired 80 percent of S Corporation's common stock on March 31, 20X4 for $360,000. At that date, the fair value of the noncontrolling interest was $90,000. On January 1, 20x4, S reported the following stockholders' equity balances: $ 150,000 Common Stock ($10 par value) Additional Paid-In Capital Retained Earnings 75,000 200,000 $ 425.000 Total Stockholders' Equity S reported net income of $100,000 in 20X4, earned uniformly throughout the year, and declared and paid dividends of $40,000 on December 31, 20X4. P reported retained earnings of $500,000 on January 1, 20X8, and had 20X4 income of $200,000 from its separate operations. P paid dividends of $50,000 on December 31, 20X4. P accounts for its investment in S Corporation using the fully adjusted equity method. Based on the information provided, what is the consolidated net income reported for the year 20x4?
P Corporation acquired 80 percent of S Corporation's common stock on March 31, 20X4 for $360,000. At that date, the fair value of the noncontrolling interest was $90,000. On January 1, 20x4, S reported the following stockholders' equity balances: $ 150,000 Common Stock ($10 par value) Additional Paid-In Capital Retained Earnings 75,000 200,000 $ 425.000 Total Stockholders' Equity S reported net income of $100,000 in 20X4, earned uniformly throughout the year, and declared and paid dividends of $40,000 on December 31, 20X4. P reported retained earnings of $500,000 on January 1, 20X8, and had 20X4 income of $200,000 from its separate operations. P paid dividends of $50,000 on December 31, 20X4. P accounts for its investment in S Corporation using the fully adjusted equity method. Based on the information provided, what is the consolidated net income reported for the year 20x4?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:P Corporation acquired 80 percent of S Corporation's common stock on March 31, 20X4 for $360,000. At
that date, the fair value of the noncontrolling interest was $90,000. On January 1, 20X4, S reported the
following stockholders' equity balances:
$ 150,000
Common Stock ($10 par value)
Additional Paid-In Capital
Retained Earnings
75,000
200,000
$ 425.000
Total Stockholders' Equity
S reported net income of $100,000 in 20X4, earned uniformly throughout the year, and declared and paid
dividends of $40,000 on December 31, 20X4. P reported retained earnings of $500,000 on January 1,
20X8, and had 20X4 income of $200,000 from its separate operations. P paid dividends of $50,000 on
December 31, 20X4. P accounts for its investment in S Corporation using the fully adjusted equity method.
Based on the information provided, what is the consolidated net income reported for the year 20X4?
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