Calculate controlling interest in consolidated income

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Point 1: Pearson Company owns 90% of the outstanding common stock of Spring Company. On January 1, 2014, Spring Company sold equipment to Pearson Company for $192,200. Spring Company had purchased the equipment for $294,000 on January 1, 2009, and had depreciated it using a 10% straight-line rate. The management of Pearson Company estimated that the equipment had a remaining useful life of five years on January 1, 2014. In 2015, Pearson Company reported $144,500 and Spring Company reported $91,900 in net income from their independent operations (including sales to affiliates).

Question 1: Calculate controlling interest in consolidated income for 2015

Reference no: EM132482620

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