Hambly Corp. owned 80% of the voting common stock of Stroban Co. During 2018, Stroban sold a parcel of land to Hambly. The land had a book value of $82,000 and was sold to Hambly for $145,000. Stroban's reported net income for 2018 was $119,000.Required:Assuming there are no other intra-entity transactions nor excess amortizations, What was the net income attributable to the noncontrolling interest of Stroban?
What will be an ideal response?
| Stroban Co.'s 2018 net income as reported | $ | 119,000 | |
| Unrealized gain on land sale ($145,000 ? $82,000) | (63,000 | ) | |
| Stroban Co.'s 2018 realized income | $ | 56,000 | |
| Noncontrolling interest percentage | 20 | % | |
| Noncontrolling interest's share of Stroban Co.'s net income | $ | 11,200 | |
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