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Oksi-84 [34.3K]
3 years ago
9

Maple Corporation and its subsidiary reported consolidated net income of $380,000 for the year ended December 31, 20X5. Maple ow

ns 75% of the common shares of its subsidiary, acquired at book value. Noncontrolling interest was assigned income of $25,000 in the consolidated income statement for 20X5. What is the amount of separate operating income reported by Maple for the year
Business
1 answer:
Klio2033 [76]3 years ago
4 0

Answer: $280,000

Explanation:

Maple owns 75% of the subsidiary and the Non controlling interest which owns 25% in the subsidiary was assigned an income of $25,000 from the subsidiary.

The income of the subsidiary is;

0.25x = 25,000

x = 25,000/0.25

x= $100,000

If both Maple and the subsidiary reported $380,000, Maple's separate income is;

= 380,000 - 100,000

= $280,000

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