What is non controlling interests share of defs net income

Assignment Help Financial Accounting

Reference no: EM13746846

ABC Company acquired a 80% interest in the DEF Company in year 1. For the year ended December 31, year 2, ABC reported net income of $100,000. During year 2, ABC sold merchandise to DEF for $10,000 at a profit of $3,000. The merchandise remained in DEF' s inventory at the end of year 2. For consolidation purposes what is the non controlling interest's share of DEF's net income for year 2? a. $ 20,000 b. $23,400 c. $24,000 d. $26,000

Reference no: EM13746846

Questions Cloud

Definition of an ibbotson and sinquefield investment : Which one of the following is a correct definition of an Ibbotson and Sinquefield investment category as used to report historical returns

What is the yield to maturity of a semi-annual bond : What is the yield to maturity of a semi-annual bond with 15 years left until it matures, 11% coupon, par value of $1000 and currently selling for $1350. I don't know what formula to use.

What amount should be reported as total retained earnings : On January 1, year 1, ABC Corp. purchased all of DEF Corp.'s common stock for $1,000,000. On that date, the fair values of DEF’s assets and liabilities equaled their carrying amounts of $800,000 and $100,000, respectively. During year 1, DEF paid cas..

What amount should be reported as total stockholders equity : Mr. Wilson own 100% of the common stock of ABC Corp. and 80% of the common stock of DEF Corp. ABC previously paid $6,000 for the remaining 20% interest in DEF. In a combined balance sheet of the two corporations at December 31, year 1, what amount sh..

What is non controlling interests share of defs net income : ABC Company acquired a 80% interest in the DEF Company in year 1. For the year ended December 31, year 2, ABC reported net income of $100,000. During year 2, ABC sold merchandise to DEF for $10,000 at a profit of $3,000. The merchandise remained in D..

Foreign exchange risk management policy : What is the company's Foreign Exchange (FX) Risk Management Policy? Is centralized or decentralized

Expected real rate of return on the ten- year : Estimate the expected real rate of return on the ten- year U. S. Treasury bond. If the real rate of return is expected to be the same for the thirty- year bond as for the ten- year bond, estimate the average annual inflation rate expected by invest..

Customer in exchange for customers past due account : How to journalize a 2-month, 6%, $203 million note receivable from a large corporate customer in exchange for the customer's past due account? Note: the company made the proper year-end adjusting entry for the interest on this note. Also, how to jour..

What MACRS convention applies to the new car : On February 15, 2013, Leo purchased and placed in service a new car that cost $23,750. The business use percentage for the car is always 100%. He does take the additional first-year depreciation. What MACRS convention applies to the new car?

User Account

All Pages