Anderson Company, a 90% owned subsidiary of Philbin Corporation, transfers inventory to Philbin at a 25% gross profit rate. The following data are availlable pertaining specifically to Philbin's intra-entity purchases from Anderson. Anderson was acquired on january 1, 2020. 2020 2021 2022 Purchases by Philbin Ending inventory on Philbin's books 1,200 $ 8,000 $ 12,000 $ 15,000 4,000 3,000 Assume the equity method is used. The following data are available pertaining to Anderson's income and dividends. 2020 2021 2022 Anderson's net income Dividends paid by Anderson 10,000 10,000 15,000 $ 70,000 $ 85.000 s 94,000 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. $9,400. $9,375. $9,425. $8,485. $9,325.

Anderson Company, a 90% owned subsidiary of Philbin Corporation, transfers inventory to Philbin at a 25% gross profit rate. The following data are availlable pertaining specifically to Philbin's intra-entity purchases from Anderson. Anderson was acquired on january 1, 2020. 2020 2021 2022 Purchases by Philbin Ending inventory on Philbin's books 1,200 $ 8,000 $ 12,000 $ 15,000 4,000 3,000 Assume the equity method is used. The following data are available pertaining to Anderson's income and dividends. 2020 2021 2022 Anderson's net income Dividends paid by Anderson 10,000 10,000 15,000 $ 70,000 $ 85.000 s 94,000 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. $9,400. $9,375. $9,425. $8,485. $9,325.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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.
2020
2021
2022
Purchases by Philbin
Ending inventory on Philbin's books 1,200 4,000
$ ৪,000 5 12,000 $15.000
3,000
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
Dividends paid by Anderson 10,000 10,000 15,000
Anderson's net income
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.
O $9,400.
$9,375.
$9,425.
$8,485.
$9,325.

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