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Noncontrolling Interest, Upstream Sales LO5 Peabody Company owns 90% of the outstanding capital stock of...

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Noncontrolling Interest, Upstream Sales LO5 Peabody Company owns 90% of the outstanding capital stock of Sloane Company. During 2014 and 2015 Sloane Company sold merchandise to Peabody Company at a markup of 25% of selling price. The selling price of the merchandise sold during the two years was $20,800 and $25,000, respectively. At the end of each year, Peabody Company had in its inventory one-fourth of the goods purchased that year from Sloane Company. Sloane Com- pany reported net income of $30,000 in 2014 and $35,000 in 2015. EXERCISE 6-3 Required: Determine the amount of the noncontrolling interest in consolidated income to be reported for 2014 and 2015

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