Answer:
1. Particulars Amount
Reported net income of Little $70,000
Multiply: Ownership share of Big Co 60%
Investment income (from Little) $42,000
2. Particulars Amount
Reported net income of Little $70,000
Multiply: non-controlling share (100%-60%) 40%
Income to the NC Interest $28,000
3. Particulars Amount
Investment in Little at beginning $300,000
Investment income (from Little) $42,000
Less: Dividends received (20000*60%) $(12,000)
Investment in Little at end of year balance $330,000
4. Particulars Amount
NC Interest at beginning $200,000
Income to the NC Interest $28,000
Less: Dividends paid to NC Interest (20000*40%) $(8,000)
NC Interest reported on the 12/31/22 $220,000
Consolidated Balance Sheet
