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Exercise 5-5 On January 1, 2014, P Company purchased an 80% interest in S Company...

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Accounting

Exercise 5-5

On January 1, 2014, P Company purchased an 80% interest in S Company for $593,600, at which time S Company had retained earnings of $313,200 and common stock of $341,000. Any difference between book value and the value implied by the purchase price was entirely attributable to a patent with a remaining useful life of 10 years.

Assume that P and S Companies reported net incomes from their independent operations of $201,800 and $104,000, respectively. Calculate the controlling interest and noncontrolling interest in consolidated net income for the year ended December 31, 2014.

Controlling Interest in Consolidated Net Income $ 277,976

Noncontrolling Interest in Consolidated Net Income $ =????

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