Keefe, Inc

Multiple Choice

Keefe, Inc., a calendar-year corporation, acquires 70% of George Company on September 1, 2010, and an additional 10% on January 1, 2011. Total annual amortization of $6,000 relates to the first acquisition. George reports the following figures for 2011: Without regard for this investment, Keefe independently earns $300,000 in net income during 2011. All net income is earned evenly throughout the year.
What is the controlling interest in consolidated net income for 2011?

A) $380,000.
B) $375,200.
C) $375,800.
D) $376,000.
E) $400,000.