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Pepsi [2]
3 years ago
13

Preparing a consolidated income statement - with noncontrolling interest, but AAP or intercompany profits

Business
1 answer:
mrs_skeptik [129]3 years ago
8 0

Answer:

Consol. Income    Parent  Subsidiary  Elimination entries    Consolidated

statement                                                 Dr               Cr

Sales                   6000000 900000                                         6900000

COGS                <u>-4200000</u> <u>-540000</u>                                         <u>-4740000</u>

Gross profit         1800000   360000                                           2160000

Income (loss)       88200         0              88200                        <u>      0        </u>

from subsidiary

Operating          <u>-1140000</u>  <u> -234000</u>                                          <u>-1374000</u>

expense

Net income        748200     126000      88200                          786000  

Net income attributable to                       37800                           <u>37800</u>

non-controlling interests*

Net income attributable to Parent                                              <u>748200</u>

Workings:

Net income attributable to non-controlling interests = 126000*30% = 37800

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