Question
Problem #3 Shout Corporation, a 80%-owned subsidiary of Pail Corporation, sold inventory items to its parent at a $48,000 profit in 2012. Pail resold one-third
Problem #3
Shout Corporation, a 80%-owned subsidiary of Pail Corporation, sold inventory items to its parent at a $48,000 profit in 2012. Pail resold one-third of this inventory to outside entities. Shout reported net income of $200,000 for 2012.
Required: Compute the Noncontrolling interest share of consolidated net income that will appear in the income statement for 2012. (use the grid for computations):
| Computations: | |
| Shout' reported income |
|
| Less: Unrealized profits in ending inventory |
|
| Shout' adjusted income |
|
| X Noncontrolling interest percentage |
|
| = Noncontrolling interest share |
|
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