What controlling interest share of consolidated net income

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Question 1: Pigeon Corporation acquired an 80% interest in Statue Company on January 1, 2014, for $90,000 cash when Statue had Capital Stock of $60,000 and Retained Earnings of $40,000. The fair value/book value differential of $12,500 was attributable to equipment with a 10-year (straight-line) life. Statue suffered a $10,000 net loss in 2014 and paid no dividends. At year-end 2014, Statue owed Pigeon $18,000 on account. Pigeon's separate income for 2011 was $150,000. Controlling interest share of consolidated net income for 2014 was ?

Option 1: $140,000.

Option 2: $141,000.

Option 3: $142,000.

Option 4: $150,000

Reference no: EM132495194

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