Question: Peabody Company owns 90 of the outstanding capital stock of

Peabody Company owns 90% of the outstanding capital stock of Sloane Company. During 2011 and 2012 Sloane Company sold merchandise to Peabody Company at a markup of 25% of selling price. The selling price of the merchandise sold during the two years was $20,800 and $25,000, respectively. At the end of each year, Peabody Company had in its inventory one- fourth of the goods purchased that year from Sloane Company. Sloane Company reported net income of $30,000 in 2011 and $35,000 in 2012.

Determine the amount of the noncontrolling interest in consolidated income to be reported for 2011 and 2012.

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  • CreatedMarch 13, 2015
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