Question regarding the bowerbird corporation

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Bowerbird Corporation purchased a 70% interest in Stage Corporation on June 1, 2006 at a purchase price of $390,400. On this date, Stage's book values were equal to its fair values except for an unrecorded copyright, and its stockholders' equity consisted of $290,000 of Common Stock and $210,000 of Retained Earnings. All cost-book differentials were attributed to the copyright, which had an estimated economic life of ten years.

During 2006, Stage earned $120,000 of net income earned uniformly throughout the year and paid $6,000 of dividends on March 1 and another $6,000 on September 1.

Minority interest income for 2006 is:

$36,000

$32,400

$61,200

$50,000

Reference no: EM13259080

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