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On October 1, 2017, Perma Company acquired for cash all of the voting common stock...

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Accounting

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On October 1, 2017, Perma Company acquired for cash all of the voting common stock of Street Company. The purchase price of Street's stock equaled the book value and fair value of Street's net assets. The separate net income for each company, excluding Perma's share of income from Street was as follows: During September, Street paid $150,000 in dividends to its stockholders. For the year ended December 31, 2017, Perma issued parent company only financial statements. These statements are not considered those of the primary reporting entity. Under the partial equity method, what is the amount of net income reported in Perma's income statement? Street $4,500,000 $2,700,000 Perma Twelve months ended 12/31/2017 Three months ended 12/31/2017 495,000 450,000 Minimized View A. $7,200,000. B. $4,650,000. C. $4,950,000. D. $1,800,000

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