Subsidiary Net Income

Bold Corporation acquired 75 percent of Toll Corporation’s voting common stock on January 1, 20X4, for $348,000, when the fair value of its net identifiable assets was $464,000 and the fair value of the noncontrolling interest was $116,000. Toll reported common stock outstanding of $150,000 and retained earnings of $270,000. The excess of fair value over book value of Toll’s net assets was attributed to amortizable assets with a remaining life of 10 years. On December 31, 20X4, Toll sold a building to Bold and recorded a gain of $20,000. Income assigned to the noncontrolling shareholders in the 20X4 consolidated income statement was $17,500.

Required

a. Compute the amount of net income Toll reported for 20X4.

b. Compute the amount reported as consolidated net income if Bold reported operating income of $234,000 for 20X4.

c. Compute the amount of income assigned to the controlling interest in the 20X4 consolidated income statement.