Purple Corporation acquired 75 percent of Socks Corporation’s common stock on January 1, 20X8, for $435,000. At that date, Socks reported common stock outstanding of $300,000 and retained earnings of $200,000, and the fair value of the noncontrolling interest was $145,000. The book values and fair values of Socks’s assets and liabilities were equal, except for other intangible assets, which had a fair value $80,000 more than book value and a 10-year remaining life. Purple and Socks reported the following data for 20X8 and 20X9:

Required

a. Compute consolidated comprehensive income for 20X8 and 20X9.

b. Compute comprehensive income attributable to the controlling interest for 20X8 and 20X9.

c. Assuming that Purple reported capital stock outstanding of $320,000 and retained earnings of $430,000 at January 1, 20X8, prepare the stockholders’ equity section of the consolidated balance sheet at December 31, 20X8 and 20X9.

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Year 20X8 20X9 Purple Corporation Operating Income $120,000 140,000 Dividends Paid $70,000 70,000 Net Income $40,000 60,000 Socks Corporation Comprehensive Income $50,000 65,000 Dividends Paid $15,000 30,000