**Topic: Calculating Noncontrolling Interest in Subsidiary Earnings**High owns 60% of Low. - **2019 Inventory Transaction:** - Low sold inventory with a cost of $70,000 to High for $100,000. - 40% of this inventory was unsold to third parties by High until 2020.- **2020 Inventory Transaction:** - Low sold inventory with a cost of $72,000 to High for $120,000. - $50,000 of this inventory was unsold to third parties by High until 2021.In 2020, Low reports a net income of $70,000. The task is to determine the noncontrolling interest in Low's 2020 income.**Answer Choices:**- $31,200- $24,800- $46,800- $37,200

Total Profit = Profit for 2020 reported by Low + Profit in beginning stock not sold to the third…

High owns 60% of Low. In 2019, Low sold inventory (ost $70,000) to High for $100,000. 40% of this inventory was not sold to third parties by High until 2020. In 2020, Low sold inventory (cost $72,000) to High for $120,000. Of this inventory, $50,000 was not sold to third parties by High until 2021. In 2020, Low reports $70,000 of net income. What is the noncontrolling interest in 2020 income of Low. $31,200 $24,800 $46,800 $37,200

High owns 60% of Low. In 2019, Low sold inventory (ost $70,000) to High for $100,000. 40% of this inventory was not sold to third parties by High until 2020. In 2020, Low sold inventory (cost $72,000) to High for $120,000. Of this inventory, $50,000 was not sold to third parties by High until 2021. In 2020, Low reports $70,000 of net income. What is the noncontrolling interest in 2020 income of Low. $31,200 $24,800 $46,800 $37,200

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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high owns 60%of low sold inventory (cost 70,000) to high for 100,000. 40% of this inventory was not sold to third parties by high until 2020. In 2020,low sold inventory (cost 72,000) to high for 120,000 of this inventory , 50,000 was not sold to third parties by high untl 2021.In 2020, low reports70,000 of net income .what is the non controlling interest in 2020 income of Low.
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