Scott Co Acquired 70% of Gregg Co

question 118

Multiple Choice

Scott Co. acquired 70% of Gregg Co. for $525,000 on December 31, 2019 when Gregg's book value was $580,000. The Gregg stock was not actively traded. On the date of acquisition, Gregg had equipment (with a ten-year life) that was undervalued in the financial records by $170,000. One year later, the two companies provided the selected amounts shown below. Additionally, no dividends have been paid. What amount of consolidated net income for 2020 is attributable to Scott's controlling interest?

• A)$580,000.
• B)$668,200.
• C)$680,100.
• D)$692,000.
• E)$723,000.

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