Please, explain how to do this.
Pint Corporation holds 70 percent of Size Company's voting
common stock. On January 1, 20X3, Size paid $500,000 to acquire a
building with a 10-year expected economic life. Size uses
straight-line depreciation for all depreciable assets. On December
31, 20X8, Pint purchased the building from Size for $180,000. Pint
reported income, excluding investment income from Size, of $140,000
and $162,000 for 20X8 and 20X9, respectively. Size reported net
income of $30,000 and $45,000 for 20X8 and 20X9, respectively.
Based on the preceding information, the amount of income
assigned to the controlling shareholders in the consolidated income
statement for 20X8 will be:
$190,000.
$170,000.
$150,000.
$175,000
