First Boston Corporation acquired 80 percent of Gulfside Corporation common stock on January 1, 20X5. Gulfside holds 60 percent of the voting shares of Paddock Company, and Paddock owns 10 percent of the stock of First Boston. All acquisitions were made at underlying book value. The fair value of the noncontrolling interest in Gulfside was equal to 20 percent of the book value of Gulfside when acquired by First Boston, and the fair value of the noncontrolling interest in Paddock was equal to 40 percent of its book value when control was acquired by Gulfside. During 20X7, income from the separate operations of First Boston, Gulfside, and Paddock was $44,000, $34,000, and $50,000, respectively, and dividends of $30,000, $20,000, and $10,000, respectively, were paid. The companies use the cost method of accounting for intercorporate investments and, accordingly, record dividends received as other (nonoperating) income.
Compute the amount of consolidated net income and the income to be assigned to the noncontrolling shareholders of Gulfside and Paddock for 20X7 using the treasury stock method.