On January 1, 2011, Pen Corporation purchased a 60 percent interest in Sal Corporation at book value (equal to fair value). At that time, Sal owned a 60 percent interest in Tip Corporation (acquired at book value equal to fair value) and a 15 percent interest in Win Company. The four companies had the following separate incomes and dividends for 2011 (separate income does not include investment income or dividendincome):

Transcribed Image Text:

Dividends Separate Income Pen Corporation Sal Corporation $600,000 $1,600,000 200,000 200,000 400,000 600,000 Win Company