Essay
On January 1,2014,Palling Corporation purchased 70% of the common stock of Sam's Storage Systems for $320,000 when Sam's had Common Stock outstanding of $100,000 and Retained Earnings of $200,000.Any excess differential was attributed to goodwill.
At the end of 2014,Palling and Sam's had unrealized inventory profits from intercompany sales of $6,000 and $8,000,respectively.These year-end profit amounts were realized in 2015.At the end of 2015,Palling held inventory acquired from Sam's with a $10,000 unrealized profit.Palling reported separate income of $100,000 for 2015 and paid dividends of $30,000.Sam's reported separate income of $70,000 for 2015 and paid dividends of $20,000.
Required:
Compute the controlling interest share of consolidated net income for 2015.
Correct Answer:

Verified
Sam's sepa...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q30: Papal Corporation acquired an 80% interest in
Q31: Use the following information to answer the
Q32: Pirate Transport bought 80% of the outstanding
Q33: Pexo Industries purchases the majority of their
Q34: Psalm Enterprises owns 90% of the outstanding
Q36: Sales by a subsidiary to its parent
Q37: Use the following information to answer the
Q38: On January 1,2014,Plastam Industries acquired an 80%
Q39: Use the following information to answer the
Q40: A downstream sale is a sale by