Paris, Inc. owns 80 percent of the voting stock of Stance, Inc. The excess total fair...
Paris, Inc. owns 80 percent of the voting stock of Stance, Inc.
The excess total fair value over book value was $75,000. Any excess
fair value is assigned to a franchise contract to be amortized over
a 10-year period. Stance holds 10 percent of the voting stock of
Paris and paid an amount that equaled 10 percent of the book value
of Paris at the time the investment was acquired. During the
current year, Paris reported its own net income of $200,000 before
investment income from Stance. Paris had dividend income from
Stance of $20,000. At the same time, Stance reported its own net
income of $40,000 before investment income. Stance's dividend
income from Paris was $5,000.
What will be reported as the net income attributable to the
noncontrolling interest of Stance?
$8,000.
$1,000.
$9,000.
$6,500.
$7,700.
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Paris, Inc. owns 80 percent of the voting stock of Stance, Inc.
The excess total fair...
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