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  3. problem #3 shout corporation, a 80%-owned subsidi

Problem #3 Shout Corporation, a 80%-owned subsidiary of Pail Corporation, sold inventory items to...

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Accounting

Problem #3

Shout Corporation, a 80%-owned subsidiary of Pail Corporation, sold inventory items to its parent at a $48,000 profit in 2012. Pail resold one-third of this inventory to outside entities. Shout reported net income of $200,000 for 2012.

Required: Compute the Noncontrolling interest share of consolidated net income that will appear in the income statement for 2012. (use the grid for computations):

Computations:

Shout' reported income

Less: Unrealized profits in ending inventory

Shout' adjusted income

X Noncontrolling interest percentage

= Noncontrolling interest share

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