Indirect Ownership
Purple Corporation recently attempted to expand by acquiring ownership in Green Company. The following ownership structure was reported on December 31, 20X9:
Investor | Investee | Percentage of Ownership Held |
Purple Corporation | Green Company | 70 |
Green Company | Orange Corporation | 10 |
Orange Corporation | Blue Company | 60 |
Green Company | Yellow Company | 40 |
The following income from operations (excluding investment income) and dividend payments were reported by the companies during 20X9:
Company | Operating Income |
DividendsPaid |
Purple Corporation | $ 90,000 | $60,000 |
Green Company | 20,000 | 10,000 |
Orange Corporation | 40,000 | 30,000 |
Blue Company | 100,000 | 80,000 |
Yellow Company | 60,000 | 40,000 |
Required
Compute the amount reported as consolidated net income for 20X9.
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