Bath Corporation holds 85 percent of the common stock of Mark Company. Bath also holds a 75 percent interest in the voting common stock of Stow, Incorporated. On December 31, 2002, Mark Company purchased 10 percent of the stock of Bath; Mark accounts for its investment using the cost method. All investments were made at the underlying book value of the shares acquired.

Information regarding 2003 operating results and dividends and the balance of company investments on January 1, 2003, is as follows:
Company 2003 Oper Inc 2003 Div 01/01/03 Bal of Invest
Bath 1,800,000 200,000 Mark 1,105,000
Stow 562,500
Mark 1,000,000 150,000 Bath 220,000
Stow 400,000 20,000 of $10
par common stock

The operating income excludes all investment income. Balance sheet information is as follows for January 1, 2003:

Bath Mark Stow
Assets 2,800,000 1,500,000 950,000
Liabilities 600,000 200,000 200,000
Common Stock 1,800,000 500,000 500,000
Retained Earnings400,000 800,000 250,000
2,800,000 1,500,000 950,000

A) Present the journal entries recorded by Bath and Stow at the time the stock dividend was declared and distributed assuming Stow elects to capitalize only the par value of the stock distributed.

B) Present the workpaper elimination entries needed to prepare
consolidated financial statements for 2003. Assume the treasury stock method of accounting for reciprocal holdings used.

C) Compute the amount reported in the 2003 consolidated income statement as consolidated net income and as income assigned to the noncontrolling interest, assuming the treasury stock method of accounting for reciprocal holdings used.