Boulder, Inc., obtained 90 percent of Rock Corporation on January 1, 2016. Annual amortization of $22,000 is

Question:

Boulder, Inc., obtained 90 percent of Rock on January 1, 2016. Annual amortization of $22,000 is applicable on the allocations of Rock's acquisition-date business fair value. On January 1, 2017, Rock acquired 75 percent of Stone Company's voting stock. Excess business fair-value amortization on this second acquisition amounted to $8,000 per year. For 2018, each of the three companies reported the following information accumulated by its separate accounting system. Separate operating income figures do not include any investment or income.
_________________________Separate Operating ____ Dividends
______________________________ Income _________ Declared
Boulder ............................... $245,000 ............$120,000
Rock .................................. 85,000 .............. 28,000
Stone ................................. 150,000 .............. 42,000
a. What is consolidated net income for 2018?
b. How is consolidated net income distributed to the controlling and noncontrolling interests?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...