Problem

On January 1, 2011, Pen Corporation purchased a 60 percent interest in Sal Corporation at...

On January 1, 2011, Pen Corporation purchased a 60 percent interest in Sal Corporation at book value (equal to fair value). At that time, Sal owned a 60 percent interest in Tip Corporation (acquired at book value equal to fair value) and a 15 percent interest in Win Company. The four companies had the following separate incomes and dividends for 2011 (all amounts are in thousands of dollars and separate income does not include investment income or dividend income):

 

Separate Income

Dividends

Pen Corporation

$1,600

$600

Sal Corporation

1,000

400

Tip Corporation

400

200

Win Company

600

200

REQUIRED: Determine the controlling and noncontrolling interest shares of consolidated net income.

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Solutions For Problems in Chapter 9