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P Company owns 80% of the outstanding stock of S Company. During 2014, S Company reported...

P Company owns 80% of the outstanding stock of S Company. During 2014, S Company reported net income of $500,120 and declared no dividends. At the end of the year, S Company’s inventory included $442,130 in unrealized profit on purchases from P Company. Intercompany sales for 2014 totaled $2,962,200. Calculate the amount of the noncontrolling interest to be deducted from consolidated income in arriving at 2014 controlling interest in consolidated net income.

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Answer #1

Answer:- $100,024

Explanation:-

Net income of the subsidiary for the year 2014 $500,120
Non- controlling interest percentage (100% - 80% =20%) 20%
Non- controlling interest in net income ($500,120 ×20%) $100,024
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