Question - Keefe, Inc., a calendar-year corporation, acquires 70% of George Company on September 1, 2010, and an additional 10% on April 1, 2011. Total annual amortization of $6,000 relates to the first acquisition. George reports the following figures for 2011:
Revenues: $500,000
Expenses: $400,000
Retained Earnings-1/1/11: $300,000
Dividends paid: $ 50,000
Common Stock: 200,000
Without regard for this investment, Keefe independently earns $300,000 in net income during 2011. All net income is earned evenly throughout the year.
What is the controlling interest in consolidated net income for 2011?
A. $373,300.
B. $372,850.
C. $371,500.
D. $376,000.
E. $372,805.