What is the noncontrolling interest's share of consolidated net income?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Redfield Company reports current earnings of $438,000 while declaring $28,000 in cash dividends. Snedeker Company earns $105,000 in net income and declares $7,000
in dividends. Redfield has held a 70 percent interest in Snedeker for several years, an investment with an acquisition-date excess fair over book value attributable solely to
goodwill. Redfield uses the initial value method to account for these shares.
On January 1 of the current year, Snedeker acquired in the open market $64,800 of Redfield's 8 percent bonds. The bonds had originally been issued several years ago at
92, reflecting a 10 percent effective interest rate. On the date of purchase, the carrying amount of the bonds payable was $62,300. Snedeker paid $59,800 based on a 12
percent effective interest rate over the remaining life of the bonds.
What is the noncontrolling interest's share of consolidated net income?
Transcribed Image Text:Redfield Company reports current earnings of $438,000 while declaring $28,000 in cash dividends. Snedeker Company earns $105,000 in net income and declares $7,000 in dividends. Redfield has held a 70 percent interest in Snedeker for several years, an investment with an acquisition-date excess fair over book value attributable solely to goodwill. Redfield uses the initial value method to account for these shares. On January 1 of the current year, Snedeker acquired in the open market $64,800 of Redfield's 8 percent bonds. The bonds had originally been issued several years ago at 92, reflecting a 10 percent effective interest rate. On the date of purchase, the carrying amount of the bonds payable was $62,300. Snedeker paid $59,800 based on a 12 percent effective interest rate over the remaining life of the bonds. What is the noncontrolling interest's share of consolidated net income?
What is the noncontrolling interest's share of consolidated net income?
Multiple Choice
O
O
O
O
$31,500.
$32,250.
$29,400.
$30,150.
Transcribed Image Text:What is the noncontrolling interest's share of consolidated net income? Multiple Choice O O O O $31,500. $32,250. $29,400. $30,150.
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