Reciprocal Ownership
Grower Supply Corporation holds 85 percent of Schultz Company’s voting common stock. At the end of 20X4, Schultz purchased 30 percent of Grower Supply’s stock. Schultz records dividends received from Grower Supply as nonoperating income. In 20X5, Grower Supply and Schultz reported operating income of $112,000 and $50,000 and paid dividends of $70,000 and $30,000, respectively.
Required
Compute the amounts reported as consolidated net income and income assigned to the controlling interest for 20X5 under the treasury stock method.
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