Indirect Ownership
Purple Corporation recently attempted to expand by acquiring ownership in Green Company. The following ownership structure was reported on December 31, 20X9:
|
|
Percentage of
|
|
Investor
|
Investee
|
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:
|
Operating
|
Dividends
|
|
Company
|
Income
|
Paid
|
|
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.