Pine Company owns an 80% interest in Salad Company and a 90% interest in Tuna Company. During 2016 and 2017, intercompany sales of merchandise were made by all three companies. Total sales amounted to $2,400,000 in 2016, and $2,700,000 in 2017. The companies sold their merchandise at the following percentages above cost. Pine 15% Salad 20% Tuna 25% The amount of merchandise remaining in the 2017 beginning and ending inventories of the companies from these intercompany sales is shown below. Reported net incomes (from independent operations including sales to affiliates) of Pine, Salad, and Tuna for 2017 were $3,600,000, $1,500,000, and $2,400,000, respectively. Required: Calculate the amount noncontrolling interest to be deducted from consolidated income in the consolidated income statement for 2017. Calculate the controlling interest in consolidated net income for 2017.
Pine Company owns an 80% interest in Salad Company and a 90% interest in Tuna Company. During 2016 and 2017, intercompany sales of merchandise were made by all three companies. Total sales amounted to $2,400,000 in 2016, and $2,700,000 in 2017. The companies sold their merchandise at the following percentages above cost. Pine 15% Salad 20% Tuna 25% The amount of merchandise remaining in the 2017 beginning and ending inventories of the companies from these intercompany sales is shown below. Reported net incomes (from independent operations including sales to affiliates) of Pine, Salad, and Tuna for 2017 were $3,600,000, $1,500,000, and $2,400,000, respectively. Required: Calculate the amount noncontrolling interest to be deducted from consolidated income in the consolidated income statement for 2017. Calculate the controlling interest in consolidated net income for 2017.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
- Pine Company owns an 80% interest in Salad Company and a 90% interest in Tuna Company. During 2016 and 2017, intercompany sales of merchandise were made by all three companies. Total sales amounted to $2,400,000 in 2016, and $2,700,000 in 2017. The companies sold their merchandise at the following percentages above cost.
Pine 15%
Salad 20%
Tuna 25%
The amount of merchandise remaining in the 2017 beginning and ending inventories of the companies from these intercompany sales is shown below.
Reported net incomes (from independent operations including sales to affiliates) of Pine, Salad, and Tuna for 2017 were $3,600,000, $1,500,000, and $2,400,000, respectively.
Required:
- Calculate the amount noncontrolling interest to be deducted from consolidated income in the consolidated income statement for 2017.
- Calculate the controlling interest in consolidated net income for 2017.
Transcribed Image Text:Merchandise Remaining in Beginning Inventory
Pine
Salad
Sold by
Pine
Salad $ 180,000
Tuna
Sold by
Pine
$
$ 180,000 $ 135,000
Salad $ 144,000
Tuna
Merchandise Remaining in Ending Inventory
Pine
Salad
$
225,000 $ 189,000 $
$ 216,000 $
$
$ 195,000 $
Tuna
207,000 $
150,000
Tuna
Total
$ 198,000
414,000
396,000
315,000
Total
138,000 $ 345,000
$ 342,000
$
345,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education