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Angela, Inc., holds a 90 percent interest in Corby Company. During 2017, Corby sold inventory costing...

Angela, Inc., holds a 90 percent interest in Corby Company. During 2017, Corby sold inventory costing $114,750 to Angela for $153,000. Of this inventory, $44,000 worth was not sold to outsiders until 2018. During 2018, Corby sold inventory costing $127,400 to Angela for $196,000. A total of $60,600 of this inventory was not sold to outsiders until 2019. In 2018, Angela reported separate net income of $170,000 while Corby's net income was $96,500 after excess amortizations. What is the noncontrolling interest in the 2018 income of the subsidiary?

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Intra entity profit 31/12/17
Ending Inventory $          44,000
Gross Profit Rate (38250/153000) 25.00%
Intra entity profit in ending inventory $          11,000
Intra entity profit 31/12/18
Ending Inventory $          60,600
Gross Profit Rate (68600/196000) 35.00%
Intra entity profit in ending inventory $          21,210
Net Income attributable to Non Controlling Interest
Reported Income in 2018 $          96,500
Intra entity profit deffered in 2017 $          11,000
Defferal of 2018 Intra entity prfit $        (21,210)
Adjusted net income $          86,290
Outside Ownership 10%
Non Controlling Interest $            8,629 (86290*10%)

ekkarill92 answered 2 years ago
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