On January 1, 2014, Wrobel Company Acquired a 90 Percent

Essay

On January 1, 2014, Wrobel Company acquired a 90 percent interest in Sally Company for $270,000. On January 1, 2014, Sally's total stockholders' equity was $300,000. The fair value and book value of Sally's individual assets and liabilities were equal.
On January 2, 2014, Sally Company acquired a 10 percent interest in Wrobel Company for $70,000. On January 2, 2014, Wrobel's total stockholders' equity was $700,000. The fair value and book value of Wrobel's individual assets and liabilities were equal.
For the year ending December 31, 2014, the following data is available:
The treasury stock method is used to account for the mutual stock holdings between Wrobel and Sally. The separate net incomes do not include investment income.
Required:
1. What is Sally's income from Wrobel for 2014?
2. What is Wrobel's income from Sally for 2014?
3. What is the noncontrolling interest share associated with Sally Company for 2014?
4. Prepare the elimination entry for Sally's Investment in Wrobel Company.