On January 1,2020, Doone Corporation acquired 60 percent of the outstanding voting stock of Rockne...
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Accounting
On January Doone Corporation acquired percent of the outstanding voting stock of Rockne Company for $ consideration. At the acquisition date, the fair value of the percent noncontrolling interest was $ and Rockne's assets and liabilities had a collective net fair value of $ Doone uses the equity method in its internal records to account for its investment in Rockne. Rockne reports net income of $ in Since being acquired, Rockne has regularly supplied inventory to Doone at percent more than cost. Sales to Doone amounted to $ in and $ in Approximately percent of the inventory purchased during any one year is not used until the following year.
What is the noncontrolling interest's share of Rockne's income?
Prepare Doone's consolidation entries required by the intraentity inventory transfers.
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