Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Kenzle Co. acquired 70% of McCready Co. on January 1, 2021. During 2021, Kenzle made several sales of Inventory to McCready. The cost and sales

image text in transcribed

Kenzle Co. acquired 70% of McCready Co. on January 1, 2021. During 2021, Kenzle made several sales of Inventory to McCready. The cost and sales price of the goods were $150,000 and $220,000, respectively. McCready still owned one-fourth of the goods at the end of 2021. Consolidated cost of goods sold for 2021 was $2,280,000 due to a consolidating adjustment for Intra-entity transfers less Intra-entity gross profit In McCready's ending Inventory. How would net Income attributable to the noncontrolling Interest be different if the transfers had been for the same amount and cost, but from McCready to Kenzie? Multiple Choice . Net Income attributable to the noncontrolling Interest would have Increased by $17.500. O Net Income attributable to the noncontrolling Interest would have decreased by $5,250. Net Income attributable to the noncontrolling Interest would have increased by $10.500. O Net Income attributable to the noncontrolling Interest would have decreased by $52.500. Net Income attributable to the noncontrolling Interest would have decreased by $15,750

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

22nd Edition

978-0324401844

Students also viewed these Accounting questions

Question

Draw a labelled diagram of the Dicot stem.

Answered: 1 week ago