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What was the net income attributable to the noncontrolling interest, assuming that the separate return method was used to assign the income tax expense?

What was the net income attributable to the noncontrolling interest, assuming that the separate return method was used to assign the income tax expense?

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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Florrick Co. owns 85% of Bishop Inc. The two companies file a consolidated income tax return and Florrick uses the initial value method to account for the investment. The following information is available from the two companies' financial statements: Separate operating income (excludes equity or dividend income from subsidiary) Net intra-entity gains on assets remaining in the consolidated entity in current year income 60,000 (included in separate operating income above) Dividends received from Bishop Inc. (not included in separate operating income above) Dividends paid The income tax rate was 40%. O $12,280 $12,625 What was the net income attributable to the noncontrolling interest, assuming that the separate return method was used to assign the income tax expense? O $10,575 Florrick Co. Bishop Inc. $500,000 $125,000 20,000 $31,250 O $6,750 28,000 120,000 50,000 -0-
Transcribed Image Text:Florrick Co. owns 85% of Bishop Inc. The two companies file a consolidated income tax return and Florrick uses the initial value method to account for the investment. The following information is available from the two companies' financial statements: Separate operating income (excludes equity or dividend income from subsidiary) Net intra-entity gains on assets remaining in the consolidated entity in current year income 60,000 (included in separate operating income above) Dividends received from Bishop Inc. (not included in separate operating income above) Dividends paid The income tax rate was 40%. O $12,280 $12,625 What was the net income attributable to the noncontrolling interest, assuming that the separate return method was used to assign the income tax expense? O $10,575 Florrick Co. Bishop Inc. $500,000 $125,000 20,000 $31,250 O $6,750 28,000 120,000 50,000 -0-
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