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McLaughlin, Inc. acquires 70 percent of Ellis Corporation on September 1, 2019, and an additional...

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Accounting

McLaughlin, Inc. acquires 70 percent of Ellis Corporation on September 1, 2019, and an additional 10 percent on November 1, 2020. Annual amortization of $12,000 relates to the first acquisition. Ellis reports the following figures for 2020:

Revenues

$500,000

Expenses

350,000

Retained earnings, 1/1/20

3,500,000

Dividends paid

40,000

Common stock

400,000

Without regard for this investment, McLaughlin earns $480,000 in net income ($840,000 revenues less $360,000 expenses; incurred evenly through the year) during 2020.

Required: Prepare a schedule of consolidated net income and apportionment to noncontrolling and controlling interests for 2020.

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