Question
On January 1, 2014, P Company purchased an 80% interest in S Company for $600,000, at which time S Company had retained earnings of $300,000
On January 1, 2014, P Company purchased an 80% interest in S Company for $600,000, at which time S Company had retained earnings of $300,000 and common stock of $350,000. Any difference between book value and the value implied by the purchase price was entirely attributable to a patent with a remaining useful life of 10 years.
Assume that P and S Companies reported net incomes from their independent operations of $200,000 and $100,000, respectively.
Calculate the controlling interest and noncontrolling interest in consolidated net income for the year ended December 31, 2014.
Controlling Interest in Consolidated Net Income | $ |
Noncontrolling Interest in Consolidated Net Income | $ |
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