What is consolidated net income for Pride and Star for

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What is consolidated net income for Pride and Star for 2013?a. $194,000.b. $197,500.c.
$203,000.d. $238,000.On January 1, 2011, Pride Co. purchased 90 percent of the outstanding
voting shares of Star Inc. for $540,000 cash. The acquisition-date fair value of the
noncontrolling interest was $60,000. At January 1, 2011, Star's net assets had a total carrying
amount of $420,000. Equipment (8-year remaining life) was undervalued on Star's financial
records by $80,000. Any remaining excess fair value over book value was attributed to a
customer list developed by Star (4-year remaining life), but not recorded on its books. Star
recorded income of $70,000 in 2011 and $80,000 in 2012. Each year since the acquisition, Star
has paid a $20,000 dividend. At January 1, 2013, Pride's retained earnings show a $250,000
balance.Selected account balances for the two companies from their separate operations were
as follows:_____________________________Pride _________________Star2013 Revenues .
. . . . . . . . . . . . . $498,000 ......................$285,0002013 Expenses . . . . . . . . . . . . . . . 350,000
........................195,000View Solution:
What is consolidated net income for Pride and Star for

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