Pabari Corporation owns an 80% interest in Alders Corporation and Alders owns a 60% interest in Babao Corporation. Both interests were acquired at a cost equal to book value equal to fair value. During 2013, Alders sells land to Babao at a profit of $12,000. Babao still holds the land at December 31, 2013. Net income (loss) of the three companies (excluding investment income) for 2013 are: Pabari $180,000 Alders 72,000 Babao (30,000) Controlling interest share of consolidated net income and noncontrolling interest share, respectively, for 2013 are Select one: a.$213,600 and ($1,200). b.$213,600 and ($3,600). c.$211,200 and ($1,200). d.$211,200 and ($3,600).
Pabari Corporation owns an 80% interest in Alders Corporation and Alders owns a 60% interest in Babao Corporation. Both interests were acquired at a cost equal to book value equal to fair value. During 2013, Alders sells land to Babao at a profit of $12,000. Babao still holds the land at December 31, 2013. Net income (loss) of the three companies (excluding investment income) for 2013 are: Pabari $180,000 Alders 72,000 Babao (30,000) Controlling interest share of consolidated net income and noncontrolling interest share, respectively, for 2013 are Select one: a.$213,600 and ($1,200). b.$213,600 and ($3,600). c.$211,200 and ($1,200). d.$211,200 and ($3,600).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pabari Corporation owns an 80% interest in Alders Corporation and Alders owns a 60% interest in Babao Corporation. Both interests were acquired at a cost equal to book value equal to fair value. During 2013, Alders sells land to Babao at a profit of $12,000. Babao still holds the land at December 31, 2013. Net income (loss) of the three companies (excluding investment income) for 2013 are:
Pabari $180,000
Alders 72,000
Babao (30,000)
Controlling interest share of consolidated net income and noncontrolling interest share, respectively, for 2013 are
Controlling interest share of consolidated net income and noncontrolling interest share, respectively, for 2013 are
Select one:
a.$213,600 and ($1,200).
b.$213,600 and ($3,600).
c.$211,200 and ($1,200).
d.$211,200 and ($3,600).
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