Walmart acquired 80% of Sam's Club on 1/1/16. During 2016, Walmart made many inventory sells to Sam's Club. The cost of goods was $865,000 and sales price of goods was $983,000. Sam's Club still owned 1/2 of the goods at the end of 2016. Consolidated cost of goods sold for 2016 was $3,256,430 due to consolidation adjustments for intra-entity transfers less intra-entity gross profit in Sam's Club ending inventory. How would the net income attributable to the noncontrolling interest differ if the transfers used the above information for Upstream? 983,000-865,000=118,000 118,000*1/2=59,000 59,000*20%=11,800 3,256,430*20%=651,286 651,286-11,800=639,486 net income attributable to noncontrolling interest

Walmart acquired 80% of Sam's Club on 1/1/16. During 2016, Walmart made many inventory sells to Sam's Club. The cost of goods was $865,000 and sales price of goods was $983,000. Sam's Club still owned 1/2 of the goods at the end of 2016. Consolidated cost of goods sold for 2016 was $3,256,430 due to consolidation adjustments for intra-entity transfers less intra-entity gross profit in Sam's Club ending inventory. How would the net income attributable to the noncontrolling interest differ if the transfers used the above information for Upstream? 983,000-865,000=118,000 118,0001/2=59,000 59,00020%=11,800 3,256,430*20%=651,286 651,286-11,800=639,486 net income attributable to noncontrolling interest

Principles of Accounting Volume 1

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ISBN:9781947172685

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Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11PB: On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received...

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

How would the net income attributable to the noncontrolling interest differ if the transfers used the above information for Upstream?

983,000-865,000=118,000

118,000*1/2=59,000

59,000*20%=11,800

3,256,430*20%=651,286

651,286-11,800=639,486 net income attributable to noncontrolling interest

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