On January 1, Year 9, P Inc. purchased 60,000 of the common shares of S Corp. for
Question:
On January 1, Year 9, P Inc. purchased 60,000 of the common shares of S Corp. for $1,800,000. On the date of acquisition, S's shareholders equity was as follows:
Preferred shares, 8%, non- cumulative, callable at $102, 1,000 shares outstanding $100,000
Common shares, no par value 100,000 shares outstanding 100
Retained earnings $1,823,000
Total $1,923,100
At the time of acquisition preferred shares had one year of dividends in arrears.
Any purchase price discrepancy is allocated to patent with an infinite life. During Year 9, S earned a net income of $500,000 and no dividends were paid out.
What is net income attributable to non-controlling interests on the consolidated income statement for the year ended December 31, Year 9?
A. $204,800
B. $196,800
C. $208,000
D. $200,000
