Net Income calculation Advances Accounting problem

[esther_sem]

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.
My question is "Is there enough information to calculate the problem?"
"If yes, can anyone help me understand how to do it?"

 

[Deleted member 4993]

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.

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[esther_sem]

Duplicate posts:

https://answers.yahoo.com/question/index?qid=20151026170506AAAWKT2

What are your thoughts?

Please share your work with us ...even if you know it is wrong

If you are stuck at the beginning tell us and we'll start with the definitions.

You need to read the rules of this forum. Please read the post titled "Read before Posting" at the following URL:

http://www.freemathhelp.com/forum/th...Before-Posting

It was posted by me
I tried to calculate the book value but I think it's not needed for the problem

January 1, 2012
Spirit Shareholder's equity before issuance = common stock outstanding + RE	145000
Sale of stock to Karl	100000
After issuing	245000
Karl's presentage ownership	50%
Book Value accuired by Karl	122500