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Package Corporation acquired 90 percent ownership of Sack Grain Company on January 1,204, for $114,300 when the fair value of Sack's net assets was $12,000

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Package Corporation acquired 90 percent ownership of Sack Grain Company on January 1,204, for $114,300 when the fair value of Sack's net assets was $12,000 higher than its $115,000 book value. The increase in value was attributed to amortizable assets with a remaining life of 10 years. At that date, the fair value of the noncontrolling interest was equal to $12,700. During 204, Sack sold land to Package at a $7,000 profit. Sack Grain reported net income of $24,000 and paid dividends of $4,800 in 204. Package reported income, exclusive of its income from Sack Grain, of $41,000 and paid dividends of $14,900 in 204. Required: a. Compute the amount of income assigned to the controlling interest in the consolidated income statement for 204. b. By what amount will the 204 income assigned to the controlling interest increase or decrease if the sale of land had been from Package to Sack Grain, the gain on the sale of land had been included in Package's $41,000 income, and the $24,000 was income from operations of Sack Grain? Package Corporation acquired 90 percent ownership of Sack Grain Company on January 1,204, for $114,300 when the fair value of Sack's net assets was $12,000 higher than its $115,000 book value. The increase in value was attributed to amortizable assets with a remaining life of 10 years. At that date, the fair value of the noncontrolling interest was equal to $12,700. During 204, Sack sold land to Package at a $7,000 profit. Sack Grain reported net income of $24,000 and paid dividends of $4,800 in 204. Package reported income, exclusive of its income from Sack Grain, of $41,000 and paid dividends of $14,900 in 204. Required: a. Compute the amount of income assigned to the controlling interest in the consolidated income statement for 204. b. By what amount will the 204 income assigned to the controlling interest increase or decrease if the sale of land had been from Package to Sack Grain, the gain on the sale of land had been included in Package's $41,000 income, and the $24,000 was income from operations of Sack Grain

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