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On January 1 , 2 0 2 0 , Doone Corporation acquired 7 0 percent of the outstanding voting stock of Rockne Company for $
On January Doone Corporation acquired percent of the outstanding voting stock of Rockne Company for $
consideration. At the acquisition date, the fair value of the percent noncontrolling interest was $ and Rockne's assets and
liabilities had a collective net fair value of $ Doone uses the equity method in its internal records to account for its investment
in Rockne. Rockne reports net income of $ in Since being acquired, Rockne has regularly supplied inventory to Doone at
percent more than cost. Sales to Doone amounted to $ in and $ in Approximately percent of the
inventory purchased during any one year is not used until the following year.
a What is the noncontrolling interest's share of Rockne's income?
b Prepare Doone's consolidation entries required by the intraentity inventory transfers.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Prepare Doone's consolidation entries required by the intraentity inventory transfers. If no entry is required for a
transactionevent selfect No journal entry required" in the first account field.
Consolidation
Worksheet Entries
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