E 9-8 Calculating net income, noncontrolling interest share, and controlling interest share with unrealized profits The affiliation
Question:
E 9-8 Calculating net income, noncontrolling interest share, and controlling interest share with unrealized profits The affiliation structure for Parang Corporation and Subsidiaries is as follows:
Parang 80%
Sangkur Keris 60%
The investments were acquired at fair value equal to book value in 2016. Parang’s ending balance of inventories in 2016 includes unrealized profits of $15,000 from Sangkur. Keris’s land account includes unrealized profits of $10,000 from Sangkur.
Separate incomes (not including investment income) for all companies for 2016 are:
Parang $400,000 separate net income Sangkur $100,000 separate net income Keris $200,000 separate net income REQuIRED:
Determine the following:
1. Parang Corporation’s income from Sangkur for 2016 2. Parang and Subsidiaries’ noncontrolling interest share for 2016 3. Parang and Subsidiaries’ controlling interest share for 2016
Step by Step Answer:
Advanced Accounting
ISBN: 9781292214597
13th Global Edition
Authors: Joseph H. Anthony, Bruce Bettinghaus, Floyd A. Beams, Kenneth Smith