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The abbreviated consolidated financial statements of Print Inc. and its subsidiary, Set Inc., for the two years ended December $31,$ Year $5,$ and Year $6,$ are presented below.

BALANCE SHEETS

Year $6$ Year $5$ Increase $($decrease$)$

Cash $ $150,000$ $ $290,000$ $ $-140,000$

Accounts receivable $1,415,0001,350,00065,000$

Inventory $380,000400,000-20,000$

Investment in Run Inc. $185,000160,00025,000$

Plant and equipment $($net$)1,270,000900,000370,000$

$ $3,400,000$ $ $3,100,000$ $ $300,000$

Current liabilities $520,000750,000-230,000$

$10\%$ debentures $800,000600,000200,000$

Common shares $1,000,000900,000100,000$

Retained earnings $900,000700,000200,000$

Non$-$controlling interest $180,000150,00030,000$

$ $3,400,000$ $ $3,100,000$ $ $300,000$

CONSOLIDATED INCOME AND RETAINED EARNINGS STATEMENT

for the Year Ended December $31,$ Year $6$

Sales $ $2,500,000$

Cost of goods sold $1,140,000$

Research and development expense $460,000$

Administration expenses $355,000$

$1,955,000$

Net operating income $545,000$

Investment income from Run $35,000$

Net income $580,000$

Less: non$-$controlling interest $80,000$

Net income attributed to Paint$$s shareholders $500,000$

Retained earnings on January $1,$ Year $6700,000$

$1,200,000$

Dividends declared and paid $300,000$

Retained earnings on December $31,$ Year $6$ $ $900,000$

Additional Information

Set is a $75-$percent$-$owned subsidiary of Print.

Print owns a $25$ percent interest in Run that is accounted for using the equity method.

During Year $6,$ Set declared and paid $$200,000$ in dividends and Run declared and paid $$40,000$ in dividends.

Depreciation of $$440,000$ is included in the cost of goods sold and research and development expenses.$$

The questions are based on the preparation of Print$$s consolidated cash flow statement under the indirect method for the year ended December $31,$ Year $6.$

Print classifies all dividend payments to and received from affiliated corporations as financing activities, along with its own dividend payments. Which of the following is the correct

amount that must be presented for dividends paid to non$-$controlling interests on Print$$s consolidated cash flow statement for the year ended December $31,$ Year $6?$

Multiple Choice $?????$

$$10,000$

$$60,000$

$$50,000$ guess

$$240,000$

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