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  1. business
  2. accounting
  3. parent company owns 90% of the outstanding capital

Parent Company owns 90% of the outstanding capital stock of Sub Company. During 2021, Sub...

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Accounting

Parent Company owns 90% of the outstanding capital stock of Sub Company. During 2021, Sub Company sold merchandise to Parent Company at a markup of 15% of selling price. The selling price of the merchandise sold during 2021 was 88000. At the end of the year, Parent Company had in its inventory onefourth of the goods purchased that year from Sub Company. Sub Company reported net income of 50000 in 2021. The noncontrolling interest in consolidated income to be reported for 2021 is

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