Applying Alternative Accounting Theories Noway Manufacturing owns 75 percent of Positive Piston Corporation’s stock. During 20X9, Noway and Positive Piston reported sales of $400,000 and $200,000 and...

Applying Alternative Accounting Theories

Noway Manufacturing owns 75 percent of Positive Piston Corporation’s stock. During 20X9, Noway and Positive Piston reported sales of $400,000 and $200,000 and expenses of $280,000 and $160,000, respectively.

Required

Compute the amount of total revenue, total expenses, and net income to be reported in the 20X9 consolidated income statement under the following alternative approaches:

a. Proprietary theory.

b. Parent company theory.

c. Entity theory.

d. Current accounting practice.