Mutually Held Stock (Requiring Simultaneous equations for solution) Based on E9-11: Pin, Inc., owns 80 percent of the capital stock of Son Company and

Mutually Held Stock (Requiring Simultaneous equations for solution) à Based on E9-11:

Pin, Inc., owns 80 percent of the capital stock of Son Company and 70 percent of the capital stock of Tin, Inc. Son owns 15 percent of the capital stock of Tin. Tin owns 25 percent of the capital stock of Pin. These ownership interrelationships are illustrated in the following diagram:

 

Income before adjusting for interests in intercompany income for each corporation follows:

Pin	$76,000
Son	$68,000
Tin	$92,000

Required: Compute Pin’s Income on a consolidated basis:

80% Son Pin 15% 25% 70% Tin