Problem #3 Shout Corporation, a 80%-owned subsidiary of Pail Corporation, sold inventory items to...
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Accounting
Problem #3
Shout Corporation, a 80%-owned subsidiary of Pail Corporation, sold inventory items to its parent at a $48,000 profit in 2012. Pail resold one-third of this inventory to outside entities. Shout reported net income of $200,000 for 2012.
Required: Compute the Noncontrolling interest share of consolidated net income that will appear in the income statement for 2012. (use the grid for computations):
Computations:
Shout' reported income
Less: Unrealized profits in ending inventory
Shout' adjusted income
X Noncontrolling interest percentage
= Noncontrolling interest share
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