On January 1, 2011 Sherwood Company, an 80% owned subsidiary of Paradise Company, sold to Paradise Company equipment with a book value of $600,000 for $840,000. The equipment had an estimated remaining useful life of eight years on the date of the intercompany sales. Paradise Company reported net income from its independent operations of $550,000, and Sherwood Company reported net income of $300,000 in the years of 2011 and 2012. 

Required: 

Calculate the controlling interest in combined net income for the years ended December 31, 2011 and December 31, 2012.

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Answer rating: 100% (QA)

Controlling interest for year ended December 312019 Gain to S sale of equipment 84000... View the full answer