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  3. on january 1, 2020, planet purchased 80% of the ou

On January 1, 2020, Planet purchased 80% of the outstanding common shares of Star. On...

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Accounting

On January 1, 2020, Planet purchased 80% of the outstanding common shares of Star. On January 2, 2020, Star sold an equipment with an original cost of $2,000 and a carrying amount of $1,200 to Planet for $1,500.

Star had owned the equipment for two years and used a five-year straight line depreciation with no residual value. Planet is using straight-line depreciation over three years with no residual value.

Star reported net income of $3,000 and Planet reported net income of $5,000 during 2020.

Q1) Prepare eliminating entry for internal transaction.

Account Debit Credit

Q2) What is the consolidated net income?

Q3) What is the Net Income attributable to NCI (NCI in net income)?

Q4) What is the Net Income attributable to Controlling Interest (Controlling Interest Net Income)?

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