Question
Edgar Co. acquired 60% of Stendall Co. on January 1, 2011. During 2011, Edgar made several sales of inventory to Stendall. The cost and selling
Edgar Co. acquired 60% of Stendall Co. on January 1, 2011. During 2011, Edgar made several sales of inventory to Stendall. The cost and selling price of the goods were $140,000 and $200,000, respectively. Stendall still owned one-fourth of the goods at the end of 2011. Consolidated cost of goods sold for 2011 was $2,140,000 because of a consolidating adjustment for intra-entity sales less the entire profit remaining in Stendall's ending inventory.how would the noncontrolling interest in net income have differed if the transfers had been for the same amount and cost, but from stendall to edgar?
a. noncontrolling interest in net income would have decreased by $6000.
b. noncontrolling interest in net income would have increased by $24000
c. noncontrolling interest in net income would have increased by $20000
d. noncontrolling interest in net income would have decreased by $18000
e. noncontrolling interest in net income would have decreased by $56000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started