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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 agoRelated Solutions
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 $111,200 to Angela for
$139,000. Of this inventory, $52,600 worth was not sold to
outsiders until 2018. During 2018, Corby sold inventory costing
$123,900 to Angela for $177,000. A total of $69,400 of this
inventory was not sold to outsiders until 2019. In 2018, Angela
reported separate net income of $237,000 while Corby's net income
was $130,500 after excess amortizations.
What is the noncontrolling...
Angela, Inc., holds a 90 percent interest in Corby Company. During 2020, Corby sold inventory costing...
Angela, Inc., holds a 90 percent interest in Corby Company.
During 2020, Corby sold inventory costing $99,900 to Angela for
$111,000. Of this inventory, $56,600 worth was not sold to
outsiders until 2021. During 2021, Corby sold inventory costing
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inventory was not sold to outsiders until 2022. In 2021, Angela
reported separate net income of $219,000 while Corby's net income
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On January 1, 2017, Harrison, Inc., acquired 90 percent of Starr Company in exchange for $1,125,000...
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Depreciation and amortization
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Interest expense
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Consolidated net income
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$
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$
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Cost of goods sold
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Depreciation and
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Interest expense
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49,000
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Cost of goods sold
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(945,000
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$
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Cost of goods
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Depreciation and
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Gain on sale of
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Interest
expense
49,000
49,000
Consolidated net
income
(168,000
)
(268,000
)...
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