How much will kaye income increase or decrease

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Question - Kaye Company acquired 100% of Fiore Company on January 1, 2009. Kaye paid $1,000 excess consideration over book value which is being amortized at $20 per year. Fiore reported net income of $400 in 2009 and paid dividends of $100. Assume the initial value method is applied. How much will Kaye's income increase or decrease as a result of Fiore's operations?

a. $400 increase

b. $300 increase

c. $380 increase

d. $100 increase

e. $210 increase

Reference no: EM131792186

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