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3 years ago

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On January 1, 2018, Chamberlain Corporation pays $550,000 for an 80% ownership in Neville. Annual excess fair-value amortization

of $25,000 results from the acquisition. For the year ended December 31, 2019, Chamberlain reports net income of $340,000 and Neville reports $175,000. The parent figures contain no income from the subsidiary.
What is the consolidated net income attributable to the non-controlling interest?

1 answer:

german3 years ago

3 0

Answer:

The question is missing the options, which are contained in the attached question.

The consolidated net income attributable to the non-controlling interest i $30,000.00 with option D as the correct answer as found in the attached

Explanation:

Neville's net income for the year $175,000.00

less annual excess fair value amortization ($25,000.00)

Net income after excess fair amortization $150,000.00

Chamberlain's share of net income

80%*$150,000.00 (<u>$120,000.00)</u>

Non-controlling interest share of net income $30,000.00

Note that the non-controlling interest is a balancing figure.

Chamberlain consolidated income can be computed thus:

Chamberlain 100% net income $380,000.00

Plus share of Neville's net income <u>$120,000.00</u>

Consolidated net income <u>$500000.00</u>

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The longer term bond has given the higher return in this case at it's YTM fell during the holding period(4 -year)

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3 years ago

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3 years ago

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2 years ago

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Answer:

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3 years ago

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Answer:

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