Petunia Company acquired an 80% interest in Shaman Company in 2016. In 2017 and 2018, Shaman reported net income of $400,000 and $480,000, respectively. During 2017, Shaman sold $80,000 of merchandise to Petunia for a $20,000 profit. Petunia sold the merchandise to outsiders during 2018 for $140,000. For consolidation purposes, what is the noncontrolling interest’s share of Shaman's 2017 and 2018 net income?

a) $90,000 and $96,000.

b) $100,000 and $76,000.

c) $84,000 and $92,000.

d) $76,000 and $100,000.

Answer rating: 100% (QA)

The correct option is d 76000 and 100000 Explanation Reported profit of 2017 ... View the full answer