McLaughlin, Inc. acquires 70 percent of Ellis Corporation on September 1, 2014, and an additional 10 percent on November 1, 2015.Annual amortization of $8,400 attributed to the controlling interest relates to the first acquisition. Ellis reports the following figures for 2015:
Revenues..............................$500,000
Expenses...............................350,000
Retained earnings, 1/1/15..........3,500,000
Dividends paid..........................40,000
Common stock.........................400,000
Without regard for this investment, McLaughlin earns $480,000 in net income ($840,000 revenues less $360,000 expenses; incurred evenly through the year) during 2015.
Required:
Prepare a schedule of consolidated net income and apportionment to non-controlling and controlling interests for 2015.