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ziro4ka [17]
3 years ago
7

On January 1, 2018, Lowell Corp. acquired 80% of the voting common stock of Boston Inc. During the year, Lowell sold to Boston f

or $450,000 goods that cost $330,000. At year-end, Boston owned 15% of the goods transferred. Boston reported net income of $204,000, and Lowell's net income was $806,000. Lowell decided to use the equity method to account for this investment. Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, what was the net income attributable to the noncontrolling interest
Business
1 answer:
Hitman42 [59]3 years ago
8 0

Answer:

$40,800

Explanation:

The computation of  the net income is shown below:-

With regard to non-controlling interest, Lowell Corp. and the non-controlling interest divided Boston net profits proportionately to their ownership interests.

Non controlling interest share of consolidated net income = Boston net income × Remaining percentage

= $204,000 × (100% - 80%)

= $204,000 × 20%

= $40,800

Therefore for computing the Non controlling interest share of consolidated net income we simply multiply the Boston net income with remaining percentage.

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umka21 [38]

Answer: Joint Venture

A Joint Venture is a business entity that is created when two or more corporations pool in their resources for a specific project.  

The corporations that are a part of the Joint Venture share the governance, risks and rewards of the joint venture.  

In a Joint venture the corporations who come together to form a joint venture retain their distinct entities.


7 0
2 years ago
All of a company's depreciation, property taxes, and insurance premiums are considered manufacturing overhead.
Irina18 [472]

All of a company's depreciation, property taxes and insurance premiums are considered manufacturing overhead (MOH) ----- False.

What is considered manufacturing overhead?

Manufacturing overhead (MOH) cost is the sum of all the indirect costs which are incurred while manufacturing a product. It is added to the cost of the final product along with the direct material and direct labor costs.

What does manufacturing overhead include?

Manufacturing overhead includes indirect materials, indirect labor, depreciation on factory buildings and machines, and insurance, taxes, and maintenance on factory facilities. Costs that are a necessary and integral part of producing the finished product.

. Direct labor :

Is the cost of the workers who make the product. The cost of supervisory personnel, management, and factory maintenance workers, although they are needed to operate the factory, are classified as indirect labor because these workers do not use the direct materials to build the product.

Learn more about company's depreciation :

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7 0
1 year ago
Consider the following statements, and indicate which variable is an independent variable and which variable is a dependent vari
Kobotan [32]

Answer and Explanation:

A. When the employees are more educated and have the higher income as compared with the less educated employees so here education would be indepedent variable and the income is dependent variable. Also the relationship between these two variables i.e. education and income is positive

Therefore the same is relevant

8 0
2 years ago
On December 31 of the current year, Plunkett Company reported an ending inventory balance of $215,500. The following additional
marishachu [46]

Answer:

The amount that Plunkett should report in ending inventory on December 31 is $156,300

Explanation:

The computation of the ending inventory is shown below:

= Ending inventory balance - FOB destination goods purchased - goods being held on consignment

= $215,500 - $44,100 - $15,100

= $156,300

The other items would not be adjusted because the other items are not included in the ending inventory so they are not being considered in the computation part.

5 0
3 years ago
Whether you need a portfolio or not is dependent on_____ (1 point) a. if you have a portfolio at home b. the type of job for whi
Mrrafil [7]
The answer is b the type of job for which you are applying
6 0
2 years ago
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