Musial earned $308,000 in net income in 2011 (including investment
income) while Matin reported $126,000. Assume there is no
amortization related to the original investment. Musial Corp bought
inventory constantly from Matin Inc. Three years intra-entity
inventory transfer figures are shown in the following table. Assume
that gross profit percentage is 20%.
2010 |
2011 |
2012 |
|
Purchase by Matin |
80,000 |
120,000 |
150,000 |
Ending inventory on Matin’s book |
12,000 |
40,000 |
30,000 |
Prepare a schedule of consolidated net income and the share to
controlling and non-controlling interests for 2011, assuming that
Musial owned only 90% of Matin.
On January 1, 2011, Matin Inc. (a wholly-owned subsidiary) bought equipment from Musial (parent) Corp. for $168,000...
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