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Business, 23.07.2021 03:00 cecem58

PET Co. owns 80% of the common shares of SAL Corp. PET has no other investments. Goodwill associated with the investment is nil, but there is a fair value increment of $62,500 relating to SAL's patent that is being amortized over 10 years. PET's and SAL's reported net income for 20X5 is as follows: PET Co. SAL Corp. Net income $200,000 $50,000 SAL declared $25,000 in dividends in 20X5. Assuming PET uses the cost method, what amount of consolidated net income attributable to the parent (ATP) would be reported in 20X5? a) $210,000
b) $215,000
c) $223,750
d) $235,000

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PET Co. owns 80% of the common shares of SAL Corp. PET has no other investments. Goodwill associated...
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