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Highpoint Owns A 95 Percent Majority Voting Interest in Middlebury
Highpoint Owns A 95 Percent Majority Voting Interest in Middlebury
interest in Middlebury
Highpoint owns a 95 percent majority voting interest in Middlebury. In turn, Middlebury owns an
80 percent majority voting interest in Lowton. In the current year, each firm reports the following
income and dividends. Separate Company income figures do not include any investment or
dividend income.
Highpoint .......................$425,000.....................$200,000
Middlebury ......................340,000.......................150,000
Lowton ...........................250,000.........................75,000
In addition, in computing its income on a full accrual basis, Middlebury's acquisition of Lowton
necessitates excess acquisition-date fair value over book value amortizations of $25,000 per
year. Similarly, Highpoint's acquisition of Middlebury requires $20,000 of excess fair-value
amortizations.
Required
• Total entity net income for the three companies less net income attributable to the
noncontrolling interests of the total entity.
ANSWER
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