B Co Owned 70% of the Voting Common Stock of C

question 110

Essay

B Co. owned 70% of the voting common stock of C Corp.; C Corp. owned 20% of B Co. For 2013, B Co. and C Corp. reported net income (not including the investment) of $600,000 and $300,000, respectively. B Co. and C Corp. paid dividends of $80,000 and $60,000, respectively.
Required:
Prepare a schedule showing B Co.'s share of consolidated net income for 2013 using the treasury stock approach.

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Definitions:

Intracompany Comparisons

The analysis and comparison of financial data or operational metrics within the same company over different periods or between different departments.

Significant Trends

Significant trends are notable long-term movements or directions in data that reveal important patterns, especially in economic or financial contexts.

Liquidity

The ability of a company to pay obligations expected to be due within the next year.