!Required informationSB Portland Inc. (Portland) owns...Portland Inc. (Portland) owns 80% of Seattle Inc. (Seattle) and uses the cost method to account for its investment. The2023 income statements of both companies are shown below.Gross profitMiscellaneous revenues (losses)Depreciation expenseIncome tax expenseNet IncomePortland$100,000Seattle$50,000(30,000) (20,000)(20,000)(15,000)(20,000(6,000)$30,000$9,000On January 1, 2023, Seattle acquired equipment for $7,000 and sold it the same day to Portland for $12,000. Theequipment had a remaining useful life of 10 years on that date. Both companies are subject to an effective tax rate of 40%.TB 07-15 Which of the following is the correct amount...Which of the following is the correct amount of consolidated net income attributable to the noncontrolling interest in Portland's 2023 consolidated income statement?

Consolidated financial statement -Financial statements of different organizations that are combined…

Answered: Which of the following is the correct…

Which of the following is the correct amount of consolidated net income attributable to the noncontrolling interest in Portland's 2023 consolidated income statement?

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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Question

!
Required information
SB Portland Inc. (Portland) owns...
Portland Inc. (Portland) owns 80% of Seattle Inc. (Seattle) and uses the cost method to account for its investment. The
2023 income statements of both companies are shown below.
Gross profit
Miscellaneous revenues (losses)
Depreciation expense
Income tax expense
Net Income
Portland
$100,000
Seattle
$50,000
(30,000) (20,000)
(20,000)
(15,000)
(20,000
(6,000)
$30,000
$9,000
On January 1, 2023, Seattle acquired equipment for $7,000 and sold it the same day to Portland for $12,000. The
equipment had a remaining useful life of 10 years on that date. Both companies are subject to an effective tax rate of 40%.
TB 07-15 Which of the following is the correct amount...
Which of the following is the correct amount of consolidated net income attributable to the noncontrolling interest in Portland's 2023 consolidated income statement?

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