Pappas Company Owns 85 Percent of Sunny Company's Stock and 80

Multiple Choice

Pappas Company owns 85 percent of Sunny Company's stock and 80 percent of Sibble Company's stock.All acquisitions were made at book value.The fair values of noncontrolling interests at the time of acquisition were equal to the proportionate share of the book values of the companies.The companies file a consolidated tax return each year and in 20X9 paid a total tax of $112,000.Each company is involved in a number of intercompany inventory transfers each period.Information on the companies' activities for 20X9 is as follows:
Pappas Company does not record income tax expense on income from subsidiaries because a consolidated tax return is filed.
-Based on the information provided,what amount of consolidated net income will be reported for the year 20X9?

A) $168,000
B) $280,000
C) $165,000
D) $250,000