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?
Chapter13: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 48P
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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-](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F99a0c143-9260-4acb-a154-00535acc3828%2F85c18584-f32e-4e67-be22-5d78f2df64b7%2Fzjyki1_processed.png&w=3840&q=75)
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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