On January 1, 20X9, A Company acquired 85 percent of B Company's voting common stock for $425,000. At that date, the fair value of the noncontrolling interest of B Company was $75,000. Immediately after A Company acquired its ownership, B Company acquired 75 percent of C Company's stock for $150,000. The fair value of the noncontrolling interest of C Company was $50,000 at that date. At January 1, 20X9, the stockholders' equity sections of the balance sheets of the companies were as follows: A Company B Company C CompanyCommon Stock $400,000 $200,000 $50,000 Additional Paid-In Capital 100,000 120,000 50,000 Retained Earnings 500,000 180,000 100,000 Total Stockholders' Equity $1,000,000 $500,000 $200,000 During 20X9, A Company reported
operating income of $175,000 and paid dividends of $50,000. B Company reported operating income of $125,000 and paid dividends of $40,000. C Company reported net income of $100,000 and paid dividends of $25,000.Based on the information provided, what amount of income will be assigned to the noncontrolling interest in the consolidated income statement for 20X9?
A. $25,000
B. $30,000
C. $55,000
D. $43,750
Answer: C
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