Consolidated net income and net income attributable to the noncontrolling interestAssume that on January 1, 2021, a parent company acquired an 85% interest in a subsidiary's voting common stock. On the date of acquisition, the fair-value of the subsidiary's net assets equaledtheir reported book values except for machinery and equipment, which had a fair value of $720,000 and a reported book value of $300,000. the machinery and equipment had a 5-year remaininguseful life and no salvage value. The following are the highly summarized pre-consolidation income statements of the parent and subsidiary for the year ended December 31, 2022:Income Statement Parent SubsidiaryRevenues$2,592,000 $345,60075,480(1,728,000)(172,800)$939,480 $172,800Equity incomeExpensesNet incomeFor the year ended December 31, 2022, what amounts will be reported for (1) consolidated net income and (2) net income attributable to the noncontrolling interest, respectively, in the parent'sconsolidated financial statements?O$952,800 and $13,320O$939,480 and $13,320O$965,400 and $25,920O$1,212,280 and $25,920

Consolidation is an activity in which financial statements of a parent and its subsidiary should be…

For the year ended December 31, 2022, what amounts will be reported for (1) consolidated net income and (2) net income attributable to the noncontrolling interest, respectively, in the parent's consolidated financial statements?

For the year ended December 31, 2022, what amounts will be reported for (1) consolidated net income and (2) net income attributable to the noncontrolling interest, respectively, in the parent's consolidated financial statements?

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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