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