Sardner Corp. owns 80% of the voting common stock of Lockhart Co. Lockhart owns 70% of Canning Co. Gardner and Lockhart both use the initial value method t ccount for their investments. The following information is available from the financial statements and records of the three companies: Separate company net income before investment income. Dividend income from investment in subsidiary Deferral of intra-entity gains. Amortization expense related to excess fair value over book value of investment Gardner Lockhart Canning Corp. Co. Co. $900,000 $650,000 $150,000 250,000 120,000 110,000 80,000 40,000 20,000 25,000 Separate company net income includes intra-entity gains before the consolidating deferral but does not include dividend income from investment in subsidiary. What amount should be reported for consolidated net income?

Sardner Corp. owns 80% of the voting common stock of Lockhart Co. Lockhart owns 70% of Canning Co. Gardner and Lockhart both use the initial value method t ccount for their investments. The following information is available from the financial statements and records of the three companies: Separate company net income before investment income. Dividend income from investment in subsidiary Deferral of intra-entity gains. Amortization expense related to excess fair value over book value of investment Gardner Lockhart Canning Corp. Co. Co. $900,000 $650,000 $150,000 250,000 120,000 110,000 80,000 40,000 20,000 25,000 Separate company net income includes intra-entity gains before the consolidating deferral but does not include dividend income from investment in subsidiary. What amount should be reported for consolidated net income?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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