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
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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?
$51,490
$67,000
$20,000
$65,000
Transcribed Image Text: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? $51,490 $67,000 $20,000 $65,000
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