Port Company owns 80% of Sherry Company. Selected data for Year 7: 

                                                                         Port Company            Sherry Company 

Total revenues, excluding investments     $800,000                              $400,000

 Total expenses                                               400,000                               300,000

 Port Co. has no other investments, but there is a fair value increment of $ 125,000 relating to plant and equipment being amortized over ten years. Port Co. uses the cost method. 

What is the amount of consolidated net income to be reported for Year 7?

Answer rating: 100% (QA)

To determine the consolidated net income for Year 7 we need to combine the financial results ... View the full answer