Wilco acquires a 80% interest in Seminol Cor book value of Seminole's identifiable net assets at that date was $1,800,000. One depreciable asset (4-year life) had a fair value that exceeded its book value by $80,000. Seminole reports $200,000 of net income in 2022 and paid $80,000 in dividends. What is the noncontrolling interest in net income for 2022?
Wilco acquires a 80% interest in Seminol Cor book value of Seminole's identifiable net assets at that date was $1,800,000. One depreciable asset (4-year life) had a fair value that exceeded its book value by $80,000. Seminole reports $200,000 of net income in 2022 and paid $80,000 in dividends. What is the noncontrolling interest in net income for 2022?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
N2
Transcribed Image Text:Wilco acquires a 80% interest in Seminole Corporation on January 1, 2022, for $1,600,000. The
book value of Seminole's identifiable net assets at that date was $1,800,000. One depreciable asset
(4-year life) had a fair value that exceeded its book value by $80,000. Seminole reports $200,000 of
net income in 2022 and paid $80,000 in dividends. What is the noncontrolling interest in net income
for 2022?
O $32,000
O $40,000
O $36,000
O $24,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education