Delta Corporation owns 70 percent of Sigma Company, and Sigma owns 60 percent of Pi, Inc., all of which are domestic corporations. There are no excess amortizations associated with any of the acquisitions. Information for the three companies for the year ending December 31, 2018 follows: Delta Sigma Pi $250,000 Separate company net income Intra-entity gross profits on transfers of inventory which remain with the buyer at the reporting date and are included in operating income above $500,000 $300,000 $44,000 $10,000 1. What is the net income attributable to the non-controlling interest in Pi for 2018? 2. What is the consolidated net income for 2018? 3. What is Delta's accrual-based net income for 2018? 4. What is the total net income attributable to the non-controlling interests for 2018?

Delta Corporation owns 70 percent of Sigma Company, and Sigma owns 60 percent of Pi, Inc., all of which are domestic corporations. There are no excess amortizations associated with any of the acquisitions. Information for the three companies for the year ending December 31, 2018 follows: Delta Sigma Pi $250,000 Separate company net income Intra-entity gross profits on transfers of inventory which remain with the buyer at the reporting date and are included in operating income above $500,000 $300,000 $44,000 $10,000 1. What is the net income attributable to the non-controlling interest in Pi for 2018? 2. What is the consolidated net income for 2018? 3. What is Delta's accrual-based net income for 2018? 4. What is the total net income attributable to the non-controlling interests for 2018?

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

Delta Corporation owns 70 percent of Sigma Company, and Sigma owns 60 percent of Pi, Inc., all
of which are domestic corporations. There are no excess amortizations associated with any of the
acquisitions. Information for the three companies for the year ending December 31, 2018 follows:
Delta
$500,000 $300,000 $250,000
$44,000
Sigma
Pi
Separate company net income
Intra-entity gross profits on transfers
of inventory which remain with the
buyer at the reporting date and are
included in operating income above
$10,000
1. What is the net income attributable to the non-controlling interest in Pi for 2018?
2. What is the consolidated net income for 2018?
3. What is Delta's accrual-based net income for 2018?
4. What is the total net income attributable to the non-controlling interests for 2018?

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