Penn Company owns a 90 interest in Salvador Company and
Penn Company owns a 90% interest in Salvador Company and an 80% interest in Sencal Company. Profit remaining in ending inventories from intercompany sales for 2011 and 2012 is indicated below.


Salvador Company reported net income of $50,000 in 2011 and $45,000 in 2012, whereas Sencal Company’s net income was $60,000 and $75,000 in 2011 and 2012, respectively.
Penn Company’s net income from its own operations (including sales to affiliates) for 2011 and 2012 was $600,000 and $400,000, respectively.

Required:
A. Determine noncontrolling interest in consolidated income for 2011 and 2012.
B. Calculate the controlling interest in consolidated income for 2011 and2012.
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help