Calculate controlling interest in consolidated net income

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Question: On January 1, 2019, Maya Company purchased a 90% interest in Jalissa Company for $2,800,000. At that time, Jalissa had $1,840,000 of common stock and $360,000 of retained earnings. The difference between implied and book value was allocated to the following assets of Jalissa Company: Inventory of $ 80,000; Plant and equipment (net) of $240,000; and goodwill of $591,111.

The plant and equipment had a 10-year remaining useful life on January 1, 2019.

During 2019, Maya sold merchandise to Jalissa at a 20% markup above cost. At December 31, 2019, Jalissa still had $163288 of merchandise in its inventory that it had purchased from Maya. In 2019, Maya reported net income from independent operations of $1530141, while Jalissa reported net income of $680436.

Calculate controlling interest in consolidated net income for 2019.

Reference no: EM132754981

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