QUESTION 7 P acquired 80% of the common stock of S on October 1, 20X6. On the date of acquisition, the book value of S was equal to the fair value of S . S reported net income of $180,000 for the year ended 12/31/20X6. Net income earned from Jan. 1 through September 30 was $100,000. • Net income earned from October 1 through December 31 was $80,000. • P reported net income of $305,000 (NOT including any income from the investment in S) for the year ended 12/31/20X6. This content is copyrighted On the consolidated income statement, what will be reported as net income attributable to the noncontrolling interest? A. $77,000 B. $20,000 OC. $36,000 D. $16,000 E. $61,000
QUESTION 7 P acquired 80% of the common stock of S on October 1, 20X6. On the date of acquisition, the book value of S was equal to the fair value of S . S reported net income of $180,000 for the year ended 12/31/20X6. Net income earned from Jan. 1 through September 30 was $100,000. • Net income earned from October 1 through December 31 was $80,000. • P reported net income of $305,000 (NOT including any income from the investment in S) for the year ended 12/31/20X6. This content is copyrighted On the consolidated income statement, what will be reported as net income attributable to the noncontrolling interest? A. $77,000 B. $20,000 OC. $36,000 D. $16,000 E. $61,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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7
Transcribed Image Text:QUESTION 7
P acquired 80% of the common stock of S on October 1, 20X6. On the date of acquisition, the book value of S was equal to the fair value of S.
• S reported net income of $180,000 for the year ended 12/31/20X6.
• Net income earned from Jan. 1 through September 30 was $100,000.
• Net income earned from October 1 through December 31 was $80,000.
• P reported net income of $305,000 (NOT including any income from the investment in S) for the year ended 12/31/20X6.
This content is copyrighted
On the consolidated income statement, what will be reported as net income attributable to the noncontrolling interest?
O A. $77,000
B. $20,000
OC. $36,000
D. $16,000
OE. $61,000
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