Sub Company sells all its output at 20 percent above cost to Par Corporation. Par purchases its entire inventory from Sub. The incomes reported by the companies over the past three years are as follows: YearSub Company'sNet IncomePar Corporation'sOperating Income20X6 150,000 $225,000 20X7 135,000 360,000 20X8 240,000 450,000 Sub Company sold inventory for $300,000, $262,500 and $337,500 in the years 20X6, 20X7, and 20X8 respectively. Par Company reported ending inventory of $105,000, $157,500 and $180,000 for 20X6, 20X7, and 20X8 respectively. Par acquired 70 percent of the ownership of Sub on January 1, 20X6, at underlying book value. The fair value of the noncontrolling interest at the date of acquisition was equal to 30 percent of the book value of Sub Company.Based
on the information given above, what will be the income to noncontrolling interest for 20X8?
A. $37,875
B. $71,275
C. $70,875
D. $39,750
Answer: C
You might also like to view...
Indicate how each event affects the elements of the financial statements. Use the following letters to record your answer in the box shown below each element. Use only one letter for each element. You do not need to enter amounts.Increase = IDecrease = DNo Effect = NA(Note that "No Effect" means that the event does not affect that element of the financial statements or that the event causes an increase in that element and is offset by a decrease in that same element.) On January 1, Year 1, Flagler Corporation borrowed $20,000 on a line-of-credit from City Bank. AssetsLiabilitiesStk. EquityRevenuesExpensesNetStmt. of ?IncomeCash Flows???????
What will be an ideal response?
The primary difference between r2 and the adjusted r2 is that
A) the adjusted r2 accounts for the total number of variables in the regression model. B) the adjusted r2 accounts for the number of independent variables in the regression model. C) the adjusted r2 accounts for the number of dependent variables in the regression model. D) the adjusted r2 accounts for multicollinearity. E) None of the above
Feedback gives the analyst the strength to be able to throw out code and rethink solutions
Indicate whether the statement is true or false
Social networks generate power through:
A. political behavior. B. Guanxi. C. social capital. D. network capital. E. Machiavellianism.