Big Time Company Owns All of the Stock of Peterson

Multiple Choice

Big Time Company owns all of the stock of Peterson Corporation and 80% of the stock of Tysen Corporation. Big Time Company earned net income of $750,000; Peterson earned $250,000; and Tysen earned $175,000. Big Time Company's consolidated income statement would report net income of:

A) $1,000,000.
B) $1,250,000.
C) $1,140,000.
D) $1,050,000.