Question

The amortization of fair value allocations totaled $60,000 in 2020. Not including its investment in Harbor, Femur Co. had its own revenues of $4,500,000 and expenses of $3,000,000 for the year 2020. The noncontrolling interest's share of the earnings of Harbor Corp. for 2020 is calculated to be

Answer 1

Answer:

Noncontrolling interest's share of the earnings = $132,000

Explanation:

Missing information;

Share of Femur Co. acquired = 70%

Amount of amortization of fair value in 2020 = $60,000

Revenues in 2020 = $2,500,000

Expenses in 2020 = $2,000,000

Find:

Noncontrolling interest's share of the earnings

Computation:

Noncontrolling interest's share of the earnings = [$2,500,000 - $2,000,000 - $60,000][1-70%]

Noncontrolling interest's share of the earnings = [440,000][0.3]

Noncontrolling interest's share of the earnings = $132,000