Alpha Company purchases 80 percent of the common stock of Omega Company on December 31, 20X0, for book value. During 20X2, Alpha pays dividends of $100,000, while Omega reports net income of $100,000 and pays dividends of $50,000. During the same year, Alpha sells land to a nonaffiliate for $80,000; Alpha had purchased land in 20X1 for $60,000. Omega purchases additional equipment from a nonaffiliate at the end of 20X2 for $150,000. Consolidated net income for 20X2 is $300,800. The indirect method is used in presenting the cash flow statement. The portion of Omegas 20X2s net income assigned to noncontrolling shareholders would be presented in the consolidated statement of cash flows as: a. A source of cash of $20,000 in the Cash Flows from Investing Activities portion of the statement b. A source of cash of $20,000 in the Cash Flows from Financing Activities portion of the statement c. A positive adjustment of $20,000 to consolidated net income in the Cash Flows from Operating Activities portion of the statement d. A negative adjustment of $20,000 to consolidated net income in the Cash Flows from Operating Activities portion of the statement
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