On July 1, 2014, Issue Company purchased 80% of the outstanding shares of Intrigue Company at a cost of $160,000. On that date, Intrigue had $100,000 of capital stock and $140,000 of retained earnings. For 2014, Issue had income of $56,000 from its separate operations and paid dividends of $30,000. For 2014, Intrigue reported income of $13,000 and paid dividends of $6,000. All the assets and liabilities of Intrigue have book values equal to their respective fair market values. Assume income was earned evenly throughout the year except for the intercompany transaction on October 1. On October 1, Issue purchased an equipment from Intrigue for $20,000. The book value of the equipment on that date was $24,000. The loss of $4,000 is reflected in the income of Intrigue indicated above. The equipment is expected to have a useful life of 5 years from the date of sale. In the December 31, 2014 consolidated statement of financial position, how much is the consolidated net income attributable to the parent company?
On July 1, 2014, Issue Company purchased 80% of the outstanding shares of Intrigue Company at a cost of $160,000. On that date, Intrigue had $100,000 of capital stock and $140,000 of
In the December 31, 2014 consolidated
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