Problem

A schedule of intercompany investment interests and separate earnings for Par Corporation,...

A schedule of intercompany investment interests and separate earnings for Par Corporation, Sit Corporation, and Tot Corporation is presented as follows:

 

Percentage Interest in Sit

Percentage Interest in Tot

Separate Earnings Current Year

Par Corporation

80%

50%

$400,000

Sit Corporation

20

200,000

Tot Corporation

10

100,000

REQUIRED

1. Compute controlling interest share and noncontrolling interest share of consolidated net income assuming no investment differences between fair value and book value or unrealized profits.


2. Compute controlling interest share and noncontrolling interest share assuming $20,000 unrealized inventory profits on Tot’s sales to Sit and a $40,000 gain on Par’s sale of land to Sit.

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Solutions For Problems in Chapter 9