Equity method account for the investment

Reference no: EM13130229

On January 1, 2006, Race Corp. purchased 80% of the voting common stock of Gallow Inc. During the year, Race sold to Gallow for $450,000 goods which cost $330,000. Gallow still owned 15% of the goods at year-end. Gallow's reported net income was $204,000, and Race's net income was $806,000. Race decided to use the equity method to account for this investment. What was the noncontrolling interest's share of consolidated net income?

a) $37,200

b) $22,800

c) $30,900

d) $40,800

Reference no: EM13130229

Questions Cloud

Evaluate the union-s claim by avoiding a type one error : Complete the procedure on each of 36 occasions. Assuming we wich to be 99% certain of avoiding a Type I error, use these data to evaluate the union's claim.

Explain organic reactions - cyclopentadiene : Organic Reactions - Cyclopentadiene, Why is cyclopentadiene monomer more stable at higher temperatures although dicyclopentadiene (dimer) is more stable at lower temperatures?

Computing monthly loan repayment : Assume that the average loan on a home is quoted to be $55,000.00. Calculate the monthly repayment necessary to have the loan repaid after 25 years if the interest rate is 7.5%.

Personal derek parfit : Personal Derek Parfit [1] We can, I think, describe cases in which, though we know the answer to every other question, we have no idea how to answer a question about personal identity. These cases are not covered by the criteria of personal ide..

Equity method account for the investment : Race decided to use the equity method to account for this investment. What was the noncontrolling interest's share of consolidated net income?

Determining the problems of break-even : Harold operates a hot dog stand at the Jugulars football games. He pays $2000 per game to rent the space. Each hot dog (with bun and condiments) costs him $0.33, and he sells hot dogs for $3 each.

Evaluate the eight fold path : Explain and evaluate the “Eight Fold Path”. Is this a reasonable philosophy for life?

Estimate the relative amount of product : Draw the reaction energy diagram for this reaction mechanism. In your diagram, label for each step, Estimate the relative amount of each product that would result. Please show all of your math

What do you mean by the break-even point : What do you mean by the break-even point? Anu has decided that unless the operation can earn at least $43,750 in operating profits, she will close it down. What number of tickets must be sold for anus amusements to make a $43,750 operating profit f..

User Account

All Pages