On January 1, 2014, P Company purchased an 80% interest in S Company for $585,600, at which time S Company had retained earnings of $313,600 and common stock of $338,400. 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.

Exercise 5-5 Your answer is incorrect. Try again. On January 1, 2014, P Company purchased an 80% interest in S Company for $585,600, at which time S Company had retained earnings of $313,600 and common stock of $338,400. 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 $196,900 and $96,600, respectively. Calculate the controlling interest and noncontrolling interest in consolidated net income for the year ended December 31, 2014. 8000 Controlling Interest in Consolidated Net Income 267780 Noncontrolling Interest in Consolidated Net Income $