Problem

Pal Corporation owns 80 percent each of the voting common stock of Sal and Tea Corporation...

Pal Corporation owns 80 percent each of the voting common stock of Sal and Tea Corporations. Sal owns 60 percent of the voting common stock of Won Corporation and 10 percent of the voting stock of Tea. Tea owns 70 percent of the voting stock of Val and 10 percent of the voting stock of Won.

The affiliates had separate incomes during 2011 as follows:

Pal Corporation

$50,000

Sal Corporation

$30,000

Tea Corporation

$35,000

Won Corporation

($20,000) loss

Val Corporation

$40,000

The only intercompany profits included in the separate incomes of the affiliates consisted of $5,000 on merchandise that Pal acquired from Tea, and it remained in Pal’s December 31, 2011, inventory.

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

Step-by-Step Solution

Request Professional Solution

Request Solution!

We need at least 10 more requests to produce the solution.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search
Solutions For Problems in Chapter 9