What the non-controlling interest in net income for the year

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Question - On January 1, 2019, Paulson Corporation purchased 65% of the outstanding common stock of Sun Company, which became a subsidiary of Paulson. No goodwill was reported on this acquisition. Differences between book value and fair value of the net identifiable assets of Sun Company on January 1, 2019, were limited to the following:

 

Book value

Fair value

Inventories (FIFO)

$19,000

$18,500

Building (net) [remaining life: 5 years; straight-line depreciation; no salvage value]

45,000

40,000

Sun's cost of goods sold was $38,000 in 2019. Sun reported an income of 30,000 in 2020. What the non-controlling interest in net income for the year ended December 31, 2020 (second year after business combination)?

1. $10,150

2. $10,850

3. $10,325

4. $10,675

Reference no: EM133133075

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