Pisa Company owns 75 percent of the stock of Siena Company on January 1, 20X3. During 20X3, Siena purchased inventory for $35,000 and sold it to Pisa for $50,000. Or this amount, Pisa reported $20,000 in ending inventory in 20X3 and later sold it in 20X4. In 20X4, Pisa sold inventory it had purchased for $40,000 to Siena for $60,000, Siena sold $45,000 of this inventory in 20X4. Assume Siena reported net income of $200,000 for 20X4, the amount of income assigned to noncontrolling shareholders in the 20X4 consolidated income statements would be: O $50,250. O $50,000. O $51,500. O $48,500.
Pisa Company owns 75 percent of the stock of Siena Company on January 1, 20X3. During 20X3, Siena purchased inventory for $35,000 and sold it to Pisa for $50,000. Or this amount, Pisa reported $20,000 in ending inventory in 20X3 and later sold it in 20X4. In 20X4, Pisa sold inventory it had purchased for $40,000 to Siena for $60,000, Siena sold $45,000 of this inventory in 20X4. Assume Siena reported net income of $200,000 for 20X4, the amount of income assigned to noncontrolling shareholders in the 20X4 consolidated income statements would be: O $50,250. O $50,000. O $51,500. O $48,500.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Pisa Company owns 75 percent of the stock of Siena Company on January 1, 20X3. During 20X3, Siena purchased inventory for $35,000 and sold it to Pisa for $50,000. Of this
amount, Pisa reported $20,000 in ending inventory in 20X3 and later sold it in 20X4. In 20X4, Pisa sold inventory it had purchased for $40,000 to Siena for $60,000. Siena sold
$45,000 of this inventory in 20X4. Assume Siena reported net income of $200,000 for 20X4, the amount of income assigned to noncontrolling shareholders in the 20X4 consolidated
income statements would be:
O $50,250.
O $50,000.
O $51,500.
O $48,500.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe5c21199-ca38-4dd8-a846-b64d60967807%2F44eda3eb-212a-4124-a19a-8b1830ea4a2c%2Fuu9f3n9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Pisa Company owns 75 percent of the stock of Siena Company on January 1, 20X3. During 20X3, Siena purchased inventory for $35,000 and sold it to Pisa for $50,000. Of this
amount, Pisa reported $20,000 in ending inventory in 20X3 and later sold it in 20X4. In 20X4, Pisa sold inventory it had purchased for $40,000 to Siena for $60,000. Siena sold
$45,000 of this inventory in 20X4. Assume Siena reported net income of $200,000 for 20X4, the amount of income assigned to noncontrolling shareholders in the 20X4 consolidated
income statements would be:
O $50,250.
O $50,000.
O $51,500.
O $48,500.
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