B CoOwned 70% of the Voting Common Stock of C Corp

question 56

Essay

B Co.owned 70% of the voting common stock of C Corp.; C Corp.owned 20% of B Co.There were no excess-value allocations at the dates the investments were acquired.For 2018, B Co.and C Corp.reported net income (not including the investment) of $600,000 and $300,000, respectively.B Co.and C Corp.declared dividends of $80,000 and $60,000, respectively.
Required:
Prepare a schedule showing net income attributable to B Co.'s controlling interest for 2018 using the treasury stock approach.

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Definitions:

Competition

A biological interaction where organisms vie for the same resources, such as food or habitat, in an ecosystem.

Symbiosis

A close, long-term interaction between two different biological species, which may be mutualistic, commensalistic, or parasitic.

Batesian Mimicry

A type of mimicry in which a non-threatening species develops similar warning signals to those of a dangerous species to avoid predation.

Müllerian Mimicry

A form of biological mimicry where two or more harmful species, usually within the same family, evolve to look alike.