Find Corp. is a joint arrangement in which Seek Inc. has a 20% interest. Although Find Corp. is an incorporated entity, it is accounted for as a joint operation. A contractual agreement gives Seek proportionate rights (20%) to all of Finds' assets and proportionate responsibilities (20%) for all of Find's liabilities. The financial statements of both businesses as at December 31, 2020, include the following information: Seek Inc. Find Corp. INCOME STATEMENTS Sales Cost of Sales $800,000 $200,000 $400,000 $100,000 Other Expenses $200.000 $60.000 Net Income $200,000 $40,000 BALANCE SHEETS Miscellaneous Assets $600,000 $300,000 Inventory $120,000 $60,000 Investment in Find $180.000 Total Assets $900,000 $360,000 Miscellaneous Liabilities $160,000 $80,000 Common Shares $200,000 $100,000 Retained Earnings, Jan 1 $340,000 $140,000 Net Income $200.000 $40.000 Total Liabilities & Equity $900,000 $360,000 Show Transcribed Text 12 During 2020, Seek sold merchandise totaling $120,000 to Find and recorded a gross profit of 50% on these sales. At the end of 2020, Find's inventory contained $30,000 worth of merchandise purchased from Seek. Find also owed $50,000 to Seek at the end of 2020. Both companies are subject to a 40% tax rate. What is the amount of non-controlling interest that would appear on Seek's December 31, 2020 Balance Sheet? $180,000 15 $144,000 tion $136,000
Find Corp. is a joint arrangement in which Seek Inc. has a 20% interest. Although Find Corp. is an incorporated entity, it is accounted for as a joint operation. A contractual agreement gives Seek proportionate rights (20%) to all of Finds' assets and proportionate responsibilities (20%) for all of Find's liabilities. The financial statements of both businesses as at December 31, 2020, include the following information: Seek Inc. Find Corp. INCOME STATEMENTS Sales Cost of Sales $800,000 $200,000 $400,000 $100,000 Other Expenses $200.000 $60.000 Net Income $200,000 $40,000 BALANCE SHEETS Miscellaneous Assets $600,000 $300,000 Inventory $120,000 $60,000 Investment in Find $180.000 Total Assets $900,000 $360,000 Miscellaneous Liabilities $160,000 $80,000 Common Shares $200,000 $100,000 Retained Earnings, Jan 1 $340,000 $140,000 Net Income $200.000 $40.000 Total Liabilities & Equity $900,000 $360,000 Show Transcribed Text 12 During 2020, Seek sold merchandise totaling $120,000 to Find and recorded a gross profit of 50% on these sales. At the end of 2020, Find's inventory contained $30,000 worth of merchandise purchased from Seek. Find also owed $50,000 to Seek at the end of 2020. Both companies are subject to a 40% tax rate. What is the amount of non-controlling interest that would appear on Seek's December 31, 2020 Balance Sheet? $180,000 15 $144,000 tion $136,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:12
Find Corp. is a joint arrangement in which Seek Inc. has a 20% interest. Although Find Corp. is an
incorporated entity, it is accounted for as a joint operation. A contractual agreement gives Seek
proportionate rights (20%) to all of Finds' assets and proportionate responsibilities (20%) for all of
Find's liabilities.
The financial statements of both businesses as at December 31, 2020, include the following
information:
Seek Inc.
Find Corp.
INCOME STATEMENTS
Sales
Cost of Sales
$800,000
$200,000
$400,000
$100,000
Other Expenses
$200.000
$60.000
Net Income
$200,000
$40,000
BALANCE SHEETS
Miscellaneous Assets
$600,000
$300,000
Inventory
$120,000
$60,000
Investment in Find
$180.000
Total Assets
$900,000
$360,000
Miscellaneous Liabilities
$160,000
$80,000
Common Shares
$200,000
$100,000
Retained Earnings, Jan 1
$340,000
$140,000
Net Income
$200.000
$40.000
Total Liabilities & Equity
$900,000
$360,000
Show Transcribed Text
During 2020, Seek sold merchandise totaling $120,000 to Find and recorded a gross profit of 50%
on these sales. At the end of 2020, Find's inventory contained $30,000 worth of merchandise
purchased from Seek. Find also owed $50,000 to Seek at the end of 2020.
Both companies are subject to a 40% tax rate.
What is the amount of non-controlling interest that would appear on Seek's December 31, 2020
Balance Sheet?
$180,000
15
$144,000
$136,000
tion
SO
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