Senn reported 20X5 net income of $40,000 and paid dividends…

Senn reported 20X5 net income of $40,000 and paid dividends of $12,000 during the year. Penn acquired 30% of Senn’s shares on January 1, 20X5, for $110,000. On December 31, 20X5, Penn determined the fair value of Senn’s shares to be $125,000. Penn reported operating income of $80,000 for 20X5. Compute Penn’s net income for 20X5, assuming that it carries the investment in Senn at fair value and uses the equity method of accounting for its investment in Senn . This is a two-part question. Be sure to answer both parts, a and b. When entering your answers, round the answers to the nearest dollar, enter the answers as numbers with no decimal places and no dollar ($) signs, and enter the numbers with or without the comma separator (e.g., either 28,374 or 28374).  For partial credit, please do the following: After stating your answers, use the partial-credit question that follows to show how you arrived at them (e.g., 13,000 ). Include any explanations or logic you used to arrive at your answers.

Information for Questions 24 to 27 On January 1, 20X4, Penn…

Information for Questions 24 to 27 On January 1, 20X4, Penn acquired 80% of Senn’s $10 par common stock for $950,000. On this date, the fair value of the non-controlling interest was $237,500, and the carrying amount (book value) of Senn’s net assets was $1,000,000. The fair values of Senn’s identifiable assets and liabilities were the same as their carrying amounts except for plant assets (net) with a remaining life of 20 years, which were $100,000 in excess of the carrying amount. For the year ended December 31, 20X4, Senn had net income of $180,000 and paid cash dividends totaling $100,000. When entering your answers,  round the answers to the nearest dollar, enter the answers as numbers with no decimal places and no dollar ($) signs, and enter the numbers with or without the comma separator (e.g., either 28,374 or 28374).  For partial credit, do the following: After stating your answers, show how you arrived at them (e.g., 13,000 ). Include any explanations or logic you used to arrive at your answers.