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assignment due soon please need the solution ASAP. Pitstick Co. reported current earnings of $580,000 while paying $58,000 in cash dividends. Lane Co. earned $150,000
assignment due soon please need the solution ASAP.
Pitstick Co. reported current earnings of $580,000 while paying $58,000 in cash dividends. Lane Co. earned $150,000 in net income and distributed $15,000 in dividends Pitstick held a 75% interest in Lane for several years, an investment that it originally acquired by transferring consideration equal to the book value of the underlying net assets. Pitstick used the initial value method to account for these shares. On January 1, 2021, Lane acquired in the open market $75,000 of Pitstick's 8% bonds. The bonds had originally been issued several years ago at a price that would yield a 10% effective interest rate. On the date of the bond purchase, the book value of the bonds payable was $68,200. Lane paid $66,000 based on a 12% effective interest rate over the remaining life of the bonds.What is the noncontrolling interest's share of the subsidiary's net income? A) $33,750. B) $35,250. C) $36.950. D) $37,500. E) $39,750. O a. E O b. D OC C Od. A Oe B Step by Step Solution
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