Blithe Company purchased 60 percent of the stock of Spirit Company for $100,000 on January 1, 2012, when Spirit reported 120,000 of common stock outstanding and retained earnings of $25,000. On December 31, 2014, Blithe reported it's investment in Spirit at $126,000 using equity method accounting for the investment. Blithe received dividends from Spirit totalling $15,000 over the three-year period. The purchase differential is amortized over 10 years.
Determine the amount of net income reported by Spirit Company Over the three-year period.
Determine the amount of net income reported by Spirit Company Over the three-year period.