Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. noncontrolling interest, upstream sales lo5 peabod

Noncontrolling Interest, Upstream Sales LO5 Peabody Company owns 90% of the outstanding capital stock of...

90.2K

Verified Solution

Question

Accounting

image

Noncontrolling Interest, Upstream Sales LO5 Peabody Company owns 90% of the outstanding capital stock of Sloane Company. During 2014 and 2015 Sloane Company sold merchandise to Peabody Company at a markup of 25% of selling price. The selling price of the merchandise sold during the two years was $20,800 and $25,000, respectively. At the end of each year, Peabody Company had in its inventory one-fourth of the goods purchased that year from Sloane Company. Sloane Com- pany reported net income of $30,000 in 2014 and $35,000 in 2015. EXERCISE 6-3 Required: Determine the amount of the noncontrolling interest in consolidated income to be reported for 2014 and 2015

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students