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Indirect Ownership

Purple Corporation recently attempted to expand by acquiring ownership in Green Company. The following ownership structure was reported on December 31, 20X9:

		Percentage of
Investor	Investee	Ownership Held
Purple Corporation	Green Company	70
Green Company	Orange Corporation	10
Orange Corporation	Blue Company	60
Green Company	Yellow Company	40

The following income from operations (excluding investment income) and dividend payments were reported by the companies during 20X9:

	Operating	Dividends
Company	Income	Paid
Purple Corporation	$ 90,000	$60,000
Green Company	20,000	10,000
Orange Corporation	40,000	30,000
Blue Company	100,000	80,000
Yellow Company	60,000	40,000

Required

Compute the amount reported as consolidated net income for 20X9.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91865101

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