On January 3, 2021 ABC acquired 90% of DEF at book value. The following information is available: 2022 2021 Inventory, Dec. 31 Intercompany cost of sales 30,000 20,000 60,000 60,000 120,000 225,000 Downstream Sale 100,000 200,000 Net income - DEF Net Income - ABC 550,000 500,000 Compute for the Profit attributable to Equity Holders of Parent or Controlling Interest in Net Income for 2022.
On January 3, 2021 ABC acquired 90% of DEF at book value. The following information is available: 2022 2021 Inventory, Dec. 31 Intercompany cost of sales 30,000 20,000 60,000 60,000 120,000 225,000 Downstream Sale 100,000 200,000 Net income - DEF Net Income - ABC 550,000 500,000 Compute for the Profit attributable to Equity Holders of Parent or Controlling Interest in Net Income for 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
ABC-DEF-PROFIT
![On January 3, 2021 ABC acquired 90% of DEF at book value. The following information is available:
2022
2021
Inventory, Dec. 31
Intercompany cost of sales
30,000
20,000
60,000
60,000
Downstream Sale
120,000
100,000
Net income – DEF
225,000
Net Income - ABC
200,000
500,000
550,000
Compute for the Profit attributable to Equity Holders of Parent or Controlling Interest in Net Income for
2022.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9ed02f5d-7cd8-4e41-b6b6-da454ec094cb%2F0c8a916d-190d-4a22-9b1b-92c364702ec1%2Fdmmyvzo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 3, 2021 ABC acquired 90% of DEF at book value. The following information is available:
2022
2021
Inventory, Dec. 31
Intercompany cost of sales
30,000
20,000
60,000
60,000
Downstream Sale
120,000
100,000
Net income – DEF
225,000
Net Income - ABC
200,000
500,000
550,000
Compute for the Profit attributable to Equity Holders of Parent or Controlling Interest in Net Income for
2022.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education