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On January 1, 2017, Doone Corporation acquired 80 percent of the outstanding voting stock of Rockne Company for $640,000 consideration. At the acquisition date, the

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On January 1, 2017, Doone Corporation acquired 80 percent of the outstanding voting stock of Rockne Company for $640,000 consideration. At the acquisition date, the fair value of the 20 percent noncontrolling interest was $160,000 and Rockne's assets and abilities had a collective net fair value of $800,000. Doone uses the equity method in its internal records to account for its investment in Rockne. Rockne reports net income of $290,000 in 2018. Since being acquired, Rockne has regularly supplied inventory to Doone at 25 percent more than cost. Sales to Doone amounted to $350.000 in 2017 and $450,000 in 2018. Approximately 30 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 2018 income? b. Prepare Doone's 2018 consolidation entries required by the intra-entity inventory transfers Complete this question by entering your answers in the tabs below. Required A Required B Prepare Doone's 2018 consolidation entries required by the intra-entity inventory transfers. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) view transaction list Consolidation a. What is the noncontrolling interest's share of Rockne's 2018 income? b. Prepare Doone's 2018 consolidation entries required by the intra-entity inventory transfers. Complete this question by entering your answers in the tabs below. Required A Required B B What is the noncontrolling interest's share of Rockne's 2018 income? Noncontrolling interest's share Required B > Consolidation Worksheet Entries Prepare entry *G Note: Enter debits before credits. Transaction Accounts Debit D Credit TL 11 31 1 view consolidation entries Record entry Clear entry Consolidation Worksheet Entries Prepare entry Note: Enter debits before - Transaction Debit Credit Record entry Clear entry view consolidation entries Consolidation Worksheet Entries Prepare entry G Note: Enter debits before Transaction Accounts Accounts Debit Credit 11 Record entry Clear entry view consolidation entries

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