Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pabari Corporation owns an 8 0 % interest in Alders Corporation and Alders owns a 6 0 % interest in Babao Corporation. Both interests were

Pabari Corporation owns an 80% interest in Alders Corporation and Alders owns a 60% interest in Babao Corporation. Both interests were acquired at a cost equal to book value equal to fair value. During 2013, Alders sells land to Babao at a profit of $12,000. Babao still holds the land at December 31,2013, Net income(loss) of the three companies (excluding investment income) for 2013 are:
Pabari Corporation $180,000
Alders Corporation $72,000
Babao Corporation $(30,000)
Controlling interest share of consolidated net income and noncontrolling interest share, respectively, for 2013 are
Group of answer choices
$211,200 and ($1,200).
$211,200 and ($3,600).
$213,600 and ($1,200).
$213,600 and ($3,600).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

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

Principles Of Knowledge Auditing Foundations For Knowledge Management Implementation

Authors: Patrick Lambe

1st Edition

0262545039, 978-0262545037

More Books

Students also viewed these Accounting questions

Question

Compare and contrast long-term and short-term orientation cultures

Answered: 1 week ago

Question

Discuss the research behind the notion of a pancultural self

Answered: 1 week ago