Tarrant Inc. owns (80 %) of Rockwall Corporation, and Rockwall owns (80 %) of Kaufman Company. During
Question:
Tarrant Inc. owns \(80 \%\) of Rockwall Corporation, and Rockwall owns \(80 \%\) of Kaufman Company. During 2020, these companies' net incomes are as follows before any consolidations:
- Tarrant, \(\$ 100,000\)
- Rockwall, \(\$ 68,000\)
- Kaufman, \(\$ 40,000\)
How much net income should Tarrant report for 2020 ?
a. \(\$ 100,000\)
b. \(\$ 164,000\)
c. \(\$ 180,000\)
d. \(\$ 204,000\)
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Related Book For 
Financial Accounting
ISBN: 9780135433065
7th Canadian Edition
Authors: Walter Harrison, Wendy Tietz, C. Thomas, Greg Berberich, Catherine Seguin
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