1.) Abracada owns 90% interest of Deli Co. The following information are provided below: Deli CoAbracada CoSales2,000,0005,400,000Cost of goods sold(800,000)(2,700,000)Gross profit1,200,0002,700,000Operating expenses(800,000)(500,000)Dividend Income 20,000Net Income400,0002,240,000Abracada Co. sold goods to Deli Co. for 60,000, 20% of these goods were sold for the year. Abracada also sold goods to Abracada Co. for 100,000, 20% of these goods were unsold at the end of the year. The ending inventory for Abracada Co is 240,000 and 100,000 for Deli Co. Compute for the non-controlling interest in Net Income.

In preparing the consolidated financial statements, inter company sales and unrealized profit are…

Answered: Compute for the non-controlling…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

100%

1.) Abracada owns 90% interest of Deli Co. The following information are provided below:

	Deli Co	Abracada Co
Sales	2,000,000	5,400,000
Cost of goods sold	(800,000)	(2,700,000)
Gross profit	1,200,000	2,700,000
Operating expenses	(800,000)	(500,000)
Dividend Income		20,000
Net Income	400,000	2,240,000

Abracada Co. sold goods to Deli Co. for 60,000, 20% of these goods were sold for the year. Abracada also sold goods to Abracada Co. for 100,000, 20% of these goods were unsold at the end of the year. The ending inventory for Abracada Co is 240,000 and 100,000 for Deli Co. Compute for the non-controlling interest in Net Income.

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions