Question - Company x acquired 60% of company Y on April 1, 2011 for 200,000. Equipment owned by Y was overvalued by 55,000 with a 4 year remaining life. Y earned income evenly during the year, but declared the $20,000 dividend on November 1, 2011.
Company X company Y
Sales (500,000) (285,000)
Cost of goods sold 320,000 120,0000
Expenses 25,000 35,0000
Dividend income 10,000 0
Net income 145,000 130,000
Find the post acquisition subsidiary net income?