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Required: Compute consolidated net income and income assigned to the controlling interest for 20X2, 20X3, and 20X4.

Required: Compute consolidated net income and income assigned to the controlling interest for 20X2, 20X3, and 20X4.

FINANCIAL ACCOUNTING
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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Summer Company sells all its output at 25 percent above cost. Parade Corporation purchases all its inventory from Summer. Selected information on the operations of the companies over the past three years is as follows: Year Sales to Parade Corporation 20x2 Summer Company Net Income 20X3 20x4 Parade Corporation Inventory, December 31 $ 200,000 $ 150,000 175,000 90,000 240,000 225,000 160,000 300,000 Parade acquired 60 percent of the ownership of Summer on January 1, 20X1, at underlying book value. Required: Compute consolidated net income and income assigned to the controlling interest for 20X2, 20X3, and 20X4. Operating Income $ 100,000 $ 70,000 105,000 120,000
Transcribed Image Text:Summer Company sells all its output at 25 percent above cost. Parade Corporation purchases all its inventory from Summer. Selected information on the operations of the companies over the past three years is as follows: Year Sales to Parade Corporation 20x2 Summer Company Net Income 20X3 20x4 Parade Corporation Inventory, December 31 $ 200,000 $ 150,000 175,000 90,000 240,000 225,000 160,000 300,000 Parade acquired 60 percent of the ownership of Summer on January 1, 20X1, at underlying book value. Required: Compute consolidated net income and income assigned to the controlling interest for 20X2, 20X3, and 20X4. Operating Income $ 100,000 $ 70,000 105,000 120,000
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