Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, 2017, doone corporation acquired 80

On January 1, 2017, Doone Corporation acquired 80 percent of the outstanding voting stock of...

50.1K

Verified Solution

Question

Accounting

On January 1, 2017, Doone Corporation acquired 80 percent of the outstanding voting stock of Rockne Company for $640,000 consideration. At the acquisition date, the fair value of the 20 percent noncontrolling interest was $160,000 and Rockne's assets and liabilities had a collective net fair value of $800,000. Doone uses the equity method in its internal records to account for its investment in Rockne. Rockne reports net income of $290,000 in 2018. Since being acquired, Rockne has regularly supplied inventory to Doone at 25 percent more than cost. Sales to Doone amounted to $350,000 in 2017 and $450,000 in 2018. Approximately 30 percent of the inventory purchased during any one year is not used until the following year.imageimageimageimage

What is the noncontrolling interest's share of Rockne's 2018 income?

Prepare Doone's 2018 consolidation entries required by the intra-entity inventory transfers.

RequiredARequired B What is the noncontrolling interest's share of Rockne's 2018 income? Noncontrolling interest's share Required A Required B

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

Chemistry
1.2K views

Question 1 a)velocity of an electron emitted by a metal whose threshold frequency is 2.24×1014 s−1s−1 when...

Psychology
1.2K views

The Fight for Equal Rights, 1923-1972 The ERA, in varying forms, was introduced in every session...

Basic Math
1.2K views

Sales of single-family houses have been brisk in Mid City this year. This has especially been...

Accounting
1.2K views

The following transactions occurred for Mouawad Inc. 1. Inventory costing $295,000 was purchased on account. 2. A new vehicle...

Physics
1.2K views

A hollow cylinderical wire carries a current I having inner and outer radii R and...

Basic Math
1.2K views

g x et powered by desmos X 5 5 0 5 5 t e shown...

Basic Math
1.2K views

Using vertices to represent states and edges to represent borders, which graph models the bordering...

Accounting
1.2K views

. (Obj. 4) Jenna Wren claims one personal exemption and three dependency exemptions on her...

Accounting
1.2K views

Project A costs $5,400 and will generate annual after-tax net cash inflows of $1,800 for...

Accounting
1.2K views

QUESTION 10 Use the information below to answer questions Q10-Q13. Hancock Company...

Accounting
1.2K views

Chapter 11 Homework Required information [The following information applies to the questions displayed below.) Part...

Accounting
1.2K views

Residual Income Washington Company has two divisions: the Adams Division and the Jefferson Division. The...