Question: On January 1 2011 Sherwood Company an 80 owned subsidiary

On January 1, 2011, Sherwood Company, an 80% owned subsidiary of Paradise Company, sold to Paradise Company equipment with a book value of $600,000 for $840,000. The equipment had an estimated remaining useful life of eight years on the date of the inter company sale.
Paradise Company reported net income from its independent operations of $550,000, and Sherwood Company reported net income of $300,000 in the years of 2011 and 2012.

Calculate the controlling interest in combined net income for the years ended December 31, 2011, and December 31, 2012.

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  • CreatedMarch 13, 2015
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