Petime Corporation acquired 90 percent ownership of United Grain Company on January 1, 20X4, for $108,000 when
Question:
During 20X4, United sold land to Petime at a $7,000 profit. United Grain reported net income of $19,000 and paid dividends of $4,000 in 20X4. Petime reported income, exclusive of its income from United Grain, of $34,000 and paid dividends of $15,000 in 20X4.
Required
a. Compute the amount of income assigned to the controlling interest in the consolidated income statement for 20X4.
b. By what amount will the 20X4 income assigned to the controlling interest increase or decrease if the sale of land had been from Petime to United Grain, the gain on the sale of land had been included in Petime's $34,000 income, and the $19,000 was income from operations of United Grain?
Consolidated Income Statement
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Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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