Question

Angela, Inc., holds a 90 percent interest in Corby Company. During 2017, Corby sold inventory costing $118,300 to Angela for $182,000. Of this inventory, $56,200 worth was not sold to outsiders until 2018. During 2018, Corby sold inventory costing $123,200 to Angela for $224,000. A total of $55,000 of this inventory was not sold to outsiders until 2019. In 2018, Angela reported separate net income of $230,000 while Corby's net income was $98,000 after excess amortizations. What is the noncontrolling interest in the 2018 income of the subsidiary?

• $9,680.

• $9,800.

• $9,292.

• $9,842.

Answer 1

The answer is $ 9,292, here is solution given in the image.
steph calcubtion of Gross profit Rate for ou 2017 Cao se profit Rate = -X100 - sales - wst of boods sold yo sales = 182.000 – 118,300*100 - 182.000 35.). 2018 *100 Gross profit Rate - 224000 - 123200 224,ooo = 45). Step2 calentation of unrealised Inventory transfered from Profit on Un sold, Angele, în Rate of Profit 19,670 2017 - Unsold inventry $56.200x357). 2018 : $55.000 x 457 24,750

Trage 2) step3 Non controlling Interest Inwore Calculation as in 2018 Actual Realised) Net in nome as subsidiary for 2018 - Net Income of 2018 + unrealised profit of 2017 which will realised in 2018 - Unrealised profit of 2018 = $98,000 + 13,670-24750 = $92,920 NCI shase = Loon so =104. - Non controlling interest income for 2018 $92,920 x 10.) = $9292