Primer Company acquired an 80% interest in SealCoat Company on January 1, 2016, for $450,000 cash when SealCoat Company had common stock of $250,000 and retained earnings of $250,000. All excess was attributable to plant assets with a 10-year life. SealCoat Company made $50,000 in 2016 and paid no dividends. Primer Company's separate income in 2016 was $625,000. The controlling interest in consolidated net income for 2016 is:
A) $675,000.
B) $665,000.
C) $660,000.
D) $625,000.

Question

Quizplus · Accepted Answer

Consolidated net income is $660,000 ($50,000 x 80% + $625,000).

Primer Company Acquired an 80% Interest in SealCoat Company on January