The affiliation structure for a group of interrelated companies is diagrammed as follows:

The investments were acquired at fair value equal to book value in 2016, and there are no unrealized or constructive profits or losses. Separate incomes and dividends for the companies for 2016 are:

1. The direct noncontrolling interest share of Tar Company's net income for 2016 is:
a. $120,000
b. $148,000
c. $252,000
d. $280,000
2. The direct noncontrolling interest share of Van Company's net income for 2016 is:
a. $48,000
b. $96,000
c. $110,400
d. $144,000
3. The total noncontrolling interest share that should appear in the consolidated income statement for 2016 is:
a. $244,200
b. $210,200
c. $204,200
d. $76,200
4. Pan's Investment in Sin account should reflect a net increase for 2016 in the amount of:
a. $762,000
b. $685,800
c. $625,800
d. $505,800

Transcribed Image Text:

Pan Company 90% Sin Company 60% 80% 70% Tar Company Win Company Van Company Separate Income Loss) Dividends Pan Sin Tar Win Van $1,240,000 350,000 400,000 100,000) $400,000 200,000 160,000 240,000 120,000