McLaughlin,Inc Without Regard for This Investment,McLaughlin Earns $480,000 in Net Income

Essay

McLaughlin,Inc.acquires 70 percent of Ellis Corporation on September 1,2010,and an additional 10 percent on November 1,2011.Annual amortization of $8,400 attributed to the controlling interest relates to the first acquisition.Ellis reports the following figures for 2011: $\begin{array} { l r } \text { Revenues } & \$ 500,000 \\\text { Expenses } & 350,000 \\\text { Retained earnings, 1/1/11 } & 3,500,000 \\\text { Dividends paid } & 40,000 \\\text { Common stock } & 400,000\end{array}$
Without regard for this investment,McLaughlin earns $480,000 in net income ($840,000 revenues less $360,000 expenses;incurred evenly through the year)during 2011.
Required: Prepare a schedule of consolidated net income and apportionment to noncontrolling and controlling interests for 2011.