Question
In: Accounting
Gibson Corp. owned a 90% interest in Sparis Co. Sparis frequently made sales of inventory to...
Gibson Corp. owned a 90% interest in Sparis Co. Sparis frequently made sales of inventory to Gibson. The sales, which include a markup over cost of 25%, were $420,000 in 2017 and $500,000 in 2018. At the end of each year, Gibson still owned 30% of the goods. Net income for Sparis was $912,000 during 2018. Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, what was the net income attributable to the noncontrolling interest for 2018?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
During 2018, Serenity Corp., a 90%-owned subsidiary, sold inventory to Patience, Inc. (its parent) for $800,000;...
During 2018, Serenity Corp., a 90%-owned subsidiary, sold
inventory to Patience, Inc. (its parent) for $800,000; the
inventory originally had cost Serenity $500,000. By the end of
2018, only one-fourth of the inventory had been resold to unrelated
parties. For 2018, the two companies reported the following:
Operating income of Patience
(excluding $900,000
earnings from
Serenity)
Net income of
Serenity
$500,000
Total
$1,400,000
Think through, and maybe write out, for yourself, the
elimination JE needed. Then...
Smart Co Sales made on credit. On July 1, 2018 it made sales of $60 000...
Smart Co Sales made on credit. On July 1, 2018 it made sales of
$60 000 with the term 3/10, n/30. On July 9, 2018 Smart Co received
$30000 payment for July 1 sales. Remaining Payment received by
smart Co on 15th July, 2018.
Requirement:
Record the Journal Transaction with discount amount with Gross
Method and Net Method.
Joey Co. holds a 90% ownership interest in Legoria Co and uses the equity method to...
Joey Co. holds a 90% ownership interest in Legoria Co and uses
the equity method to account for its investment in Legoria Co. Each
year, Legoria Co. purchases large quantities of a certain metal
used in producing golf clubs. Suppose Joey Co. sold metal priced at
$5,000,000 to Legoria in 2017 and at December 31, 2017, Legoria’s
ending inventory includes $840,000 purchased from Joey. Joey’s
markup is 20 percent of cost. All of the $840,000 of inventory on
hand at...
LIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for...
LIFO Perpetual Inventory
The beginning inventory at Dunne Co. and data on purchases and
sales for a three-month period are as follows:
Date
Transaction
Number
of Units
Per Unit
Total
Apr. 3
Inventory
78
$300
$23,400
8
Purchase
156
360
56,160
11
Sale
105
1,000
105,000
30
Sale
66
1,000
66,000
May 8
Purchase
130
400
52,000
10
Sale
78
1,000
78,000
19
Sale
39
1,000
39,000
28
Purchase
130
440
57,200
June 5
Sale
78
1,050
81,900
16
Sale...
LIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for...
LIFO Perpetual Inventory
The beginning inventory at Dunne Co. and data on purchases and
sales for a three-month period are as follows:
Date
Transaction
Number
of Units
Per Unit
Total
Apr. 3
Inventory
42
$525
$22,050
8
Purchase
84
630
52,920
11
Sale
56
1,750
98,000
30
Sale
35
1,750
61,250
May 8
Purchase
70
700
49,000
10
Sale
42
1,750
73,500
19
Sale
21
1,750
36,750
28
Purchase
70
770
53,900
June 5
Sale
42
1,840
77,280
16
Sale...
FIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for...
FIFO Perpetual Inventory
The beginning inventory at Dunne Co. and data on purchases and
sales for a three-month period ending June 30 are as follows:
Date
Transaction
Number
of Units
Per Unit
Total
Apr. 3
Inventory
90
$450
$40,500
8
Purchase
180
540
97,200
11
Sale
120
1,500
180,000
30
Sale
75
1,500
112,500
May 8
Purchase
150
600
90,000
10
Sale
90
1,500
135,000
19
Sale
45
1,500
67,500
28
Purchase
150
660
99,000
June 5
Sale
90
1,575...
FIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for...
FIFO Perpetual Inventory
The beginning inventory at Dunne Co. and data on purchases and
sales for a three-month period ending June 30 are as follows:
Date
Transaction
Number
of Units
Per Unit
Total
Apr. 3
Inventory
60
$225
$13,500
8
Purchase
120
270
32,400
11
Sale
80
750
60,000
30
Sale
50
750
37,500
May 8
Purchase
100
300
30,000
10
Sale
60
750
45,000
19
Sale
30
750
22,500
28
Purchase
100
330
33,000
June 5
Sale
60
790...
FIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for...
FIFO Perpetual Inventory
The beginning inventory at Dunne Co. and data on purchases and
sales for a three-month period ending June 30 are as follows:
Date
Transaction
Number
of Units
Per Unit
Total
Apr. 3
Inventory
25
$1,200
$30,000
8
Purchase
75
1,240
93,000
11
Sale
40
2,000
80,000
30
Sale
30
2,000
60,000
May 8
Purchase
60
1,260
75,600
10
Sale
50
2,000
100,000
19
Sale
20
2,000
40,000
28
Purchase
80
1,260
100,800
June 5
Sale
40
2,250...
FIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for...
FIFO Perpetual Inventory
The beginning inventory at Dunne Co. and data on purchases and
sales for a three-month period ending June 30 are as follows:
Date
Transaction
Number
of Units
Per Unit
Total
Apr. 3
Inventory
48
$225
$10,800
8
Purchase
96
270
25,920
11
Sale
64
750
48,000
30
Sale
40
750
30,000
May 8
Purchase
80
300
24,000
10
Sale
48
750
36,000
19
Sale
24
750
18,000
28
Purchase
80
330
26,400
June 5
Sale
48
790...
FIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for...
FIFO Perpetual Inventory
The beginning inventory at Dunne Co. and data on purchases and
sales for a three-month period ending June 30 are as follows:
Date
Transaction
Number
of Units
Per Unit
Total
Apr. 3
Inventory
66
$300
$19,800
8
Purchase
132
360
47,520
11
Sale
88
1,000
88,000
30
Sale
55
1,000
55,000
May 8
Purchase
110
400
44,000
10
Sale
66
1,000
66,000
19
Sale
33
1,000
33,000
28
Purchase
110
440
48,400
June 5
Sale
66
1,050...
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