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 $7,000in 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 togoodwill. 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 at92, 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 12percent 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 ChoiceOOOO$31,500.$32,250.$29,400.$30,150.

-Redfield company net income is $438,000-Snedeker company net income is $105,000-since Redfield…

Answered: What is the noncontrolling interest's…

Business

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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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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

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.

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