What is the net income attributable

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On January 1, 2016, Leo Company purchased 80 percent of Natalie Company's capital stock for $584,000 in cash and other assets. Natalie had a book value of $700,000 and the 20 percent noncontrolling interest fair value was $146,000 on that date. On January 1, 2015, Natalie had acquired 30 percent of Leo for $354,250. Leo's appropriately adjusted book value as of that date was $1,147,500.

Separate operating income figures (not including investment income) for these two companies follow. In addition, Uncle declares and pays $25,000 in dividends to shareholders each year and Natalie distributes $6,000 annually. Any excess fair-value allocations are amortized over a 10-year period.

Leo Natalie

Year Comapny Company

2016 $164,000  $35,200 

2017  $186,000   $56,000 

2018  $216,000   $64,400 

  1. If Leo uses the equity method for investment, what is the subsidiary's income recognized by Leo in 2018?
  2. What is the net income attributable to the noncontrolling interest for 2018?

Reference no: EM132431301

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