Pal Corporation owns 80 percent each of the voting common stock of Sal and Tea Corporations Sal owns 60 percent of the voting common stock of Won Corporation and 10 percent of the voting stock of Tea Tea owns 70 percent of the voting stock of Val and 10 percent of the voting stock of Won The affili...

Pal Sal Tea Won Val Separate earnings 50000 30000 3 ...

Pal Corporation owns 80 percent each of the voting common stock of Sal and Tea Corporations. Sal

Question:

Pal owns 80 percent each of the voting of Sal and Tea Corporations. Sal owns 60 percent of the voting of Won and 10 percent of the voting stock of Tea. Tea owns 70 percent of the voting stock of Val and 10 percent of the voting stock of Won.
The affiliates had separate incomes during 2011 as follows:
Pal ....... $50,000
Sal ....... $30,000
Tea ...... $35,000
Won ... ($20,000) loss
Val ..... $40,000
The only intercompany profits included in the separate incomes of the affiliates consisted of $5,000 on merchandise that Pal acquired from Tea and which remained in Pal’s December 31, 2011, inventory.
REQUIRED: Compute controlling and noncontrolling interest shares of consolidated net income.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...