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Use the following information to answer the question(s) below.
Paiva Corporation owns 80% of Ackroyd Corporation's outstanding common stock and Ackroyd owns 80% of the outstanding common stock of Bailey Corporation. Bailey Corporation owns 10% of the outstanding common stock of Ackroyd Corporation. The cost of the investments was equal to book value and there were not fair value/book value differences for the investments. The separate net incomes for the three affiliated companies for the year ended December 31, 2014 (excluding investment income) are as follows: Paiva Corporation, $100,000, Ackroyd Corporation, $50,000, and Bailey Corporation, $30,000. Use the conventional approach.
Symbols used:
Income of Paiva on a consolidated basis
A = Income of Ackroyd on a consolidated basis
B = Income of Eailey on a consolidated basis
-The equation,in a set of simultaneous equations,that computes Paiva Corporation income on a consolidated basis is
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