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Lexus Corporation acquired 70 percent of Triumph Corporation's voting stock on January 1,202, for $280,000....

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Accounting

Lexus Corporation acquired 70 percent of Triumph Corporation's voting stock on January 1,202, for $280,000. The fair value of the noncontrolling interest was $120,000 at the date of
acquisition. Triumph reported common stock outstanding of $80,000 and retained earnings of $270,000. The differential is assigned to buildings with an expected life of 10 years at the da
of acquisition.
On December 31,204, Lexus had $10,000 of unrealized profits on its books from inventory sales to Triumph, and Triumph had $15,000 of unrealized profit on its books from inventory
sales to Lexus. All inventory held at December 31,20X4, was sold during 205.
On December 31,205, Lexus had $12,000 of unrealized profit on its books from inventory sales to Triumph, and Triumph had unrealized profit on its books of $28,000 from inventory sales
to Lexus.
In 205 Triumph reported net income of $160,000. The amount Lexus will report as Income from Triumph Company for year 205 would be:
$100,900.
$99,600.
$98,800.
$97,400.
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