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1. Keefe Inc, a calendar-year corporation, acquires 70% of George Company on September 1, 2014, and an additional 10% on January 1, 2015. Total annual amortization of $6,000 relates to the first acquisition. George reports the following figures for 2015:
Revenues $500,000
Expenses 400,000
Retained earnings, 1/1/15 300,000
Dividends paid 50,000
Common stock 200,000
2. Without regard for this investment, Keefe independently earns $300,000 in net income during 2015. All net income is earned evenly throughout the year. What is the controlling interest in consolidated net income for 2015?
A. $380,000.
B. $375,200.
C. $375,800.
D. $376,000.
E. $400,000
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