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On January 2 20X2 Kentucky Company acquired 70 of BluegrassCorporation s common stock for $420000 cash At the acquisitiondate the book values and fair values of Bluegrass& assets

On January 2, 20X2, Kentucky Company acquired 70% of BluegrassCorporation's common stock for $420,000 cash. At the acquisitiondate, the book values and fair values of Bluegrass' assets andliabilities were equal, and the fair value of the noncontrollinginterest was equal to 30% of the total book value of Bluegrass. Thestockholders' equity accounts of the two companies at theacquisition date are as follows:

 

Kentucky

Bluegrass

Common Stock ($10 parvalue)

$600,000

$350,000

Additional Paid-In Capital

450,000

50,000

Retained Earnings

      250,000

   200,000

Total Stockholders’ Equity

$1,300,000

$600,000

 

Noncontrolling interest was assigned income of $15,000 inKentucky's consolidated income statement for 20X2.

21.

Required information

Based on the preceding information, what will be the amount ofnet income reported by Bluegrass Corporation in 20X2?

$45,000

$50,000

$75,000

$105,000

 
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Mar 21 2020 View more View Less

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