Pilfer Company acquired 90 percent ownership of Scrooge Corporation in 20X7, at underlying book value. On that date, the fair value of noncontrolling interest was equal to 10 percent of the book value of Scrooge Corporation. Pilfer purchased inventory from Scrooge for $75,000 on August 20, 20X8, and resold 60 percent of the inventory to unaffiliated companies on December 1, 20X8, for $90,000. Scrooge produced the inventory sold to Pilfer for $55,000. The companies had no other transactions during 20X8. Based on the information given above, what amount of consolidated net income will be assigned to the controlling interest for 20X8?

Pilfer Company acquired 90 percent ownership of Scrooge Corporation in 20X7, at underlying book value. On that date, the fair value of noncontrolling interest was equal to 10 percent of the book value of Scrooge Corporation. Pilfer purchased inventory from Scrooge for $75,000 on August 20, 20X8, and resold 60 percent of the inventory to unaffiliated companies on December 1, 20X8, for $90,000. Scrooge produced the inventory sold to Pilfer for $55,000. The companies had no other transactions during 20X8. Based on the information given above, what amount of consolidated net income will be assigned to the controlling interest for 20X8?

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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