Question
Johnson Inc. acquired 90% of Trader Co. by paying $477,000 cash on January 1, 2019. Trader Co. reported a Common Stock account balance of $140,000
Johnson Inc. acquired 90% of Trader Co. by paying $477,000 cash on January 1, 2019. Trader Co. reported a Common Stock account balance of $140,000 and Retained Earnings of $280,000 on the acquisition date. The fair value of Trader Co. was appraised at $530,000. The subsidiary earned $98,000 in 2019 and $126,000 in 2020. Johnson had income of $308,000 in 2019 and $364,000 in 2020. The total annual amortization was $11,000 as a result of this transaction.
a. Using the information above, calculate consolidated net income for year-end 2019.
b. Calculate noncontrolling interest income for year-end 2019.
c. Calculate controlling interest income for year-end 2019.
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