Anderson Company, a 90% owned subsidiary of Philbin Corporation, transfers inventory to Philbin at a 25% gross profit rate. The following data are available pertaining specifically to Philbin's intra-entity purchases from Anderson. Anderson was acquired on January 1, 2020. Purchases by Philbin Ending inventory on Philbin's books 2022 2020 2021 $8,000 $12,000 $15,000 1,200 4,000 3,000
Anderson Company, a 90% owned subsidiary of Philbin Corporation, transfers inventory to Philbin at a 25% gross profit rate. The following data are available pertaining specifically to Philbin's intra-entity purchases from Anderson. Anderson was acquired on January 1, 2020. Purchases by Philbin Ending inventory on Philbin's books 2022 2020 2021 $8,000 $12,000 $15,000 1,200 4,000 3,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Anderson Company, a 90% owned subsidiary of Philbin Corporation, transfers inventory to Philbin at a 25% gross
profit rate. The following data are available pertaining specifically to Philbin's intra-entity purchases from Anderson.
Anderson was acquired on January 1, 2020.
Purchases by Philbin
Ending inventory on Philbin's
books
Anderson's net income
Dividends paid by
Anderson
2021
$12,000
2020
$8,000
1,200 4,000 3,000
2022
$15,000
Assume the equity method is used. The following data are available pertaining to Anderson's Income and dividends.
2020 2021 2022
$70,000 $85,000 $94,000
10,000 10,000 15,000
Multiple Choice
Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset
transfers, compute the net income attributable to the noncontrolling interest of Anderson for 2022.
Transcribed Image Text:Multiple Choice
$9,325.
$9,400.
$9,425.
$9,375.
$8,485.
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