On June Past Company Past sold some land to its subsidiary, Sloan LtdSloan for $ The land had cost Past $ when it was acquired three years previously.
The transaction was subject to income tax at a rate of On April Sloan sold the land to an outside party for $
This transaction was also subject to income tax at a rate.
Past owns of the outstanding shares of Sloan and accounts for its investment using the cost method.
What effect will the adjustment for the realization of the intercompany gain in the preparation of the consolidated income statement have on the noncontrolling interest in income for
Multiple Choice
It will have no effect on the noncontrolling interest in income.
It will decrease the noncontrolling interest in income by $
It will increase the noncontrolling interest in income by $
It will increase the noncontrolling interest in income by $
