acct 5

# acct 5 - \$1,60,000 Outside ownership percentage 20 a...

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Assignment Code: 7732232 Gardner corporation holds 80 percent of healthstone, which in turn holds 80 percent of icede. Operational income figures (without investment income) as well as unrealized upstream gains included in the income for the current year follows. Gardner Healthstone icede Operational income 400,000 300,000 220,000 Unrealized gains 50,000 30,000 60,000 What balance does the consolidated income statement for the year report for the nocontrolling interest in the subsidiaries “income”? a) 86,000 b) 100,000 c) 111,600 d) 120,800 Solution: Correct answer is C: \$111,600 Calculation: Icede’s reported income . ........................................ ……… \$220,000 Recognition of prior year unrealized gain . ...................... - Deferral of current year unrealized gain . ........................ (60,000 ) Icede’s realized income . .................................................
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Unformatted text preview: \$1,60,000 Outside ownership percentage . ...................................... 20% a) Noncontrolling interest in subsidiary's income \$ 32,000 Healthstone’s reported income . ................................ ……… \$300,000 Recognition of prior year unrealized gain . ......................-Deferral of current year unrealized gain . ........................ (30,000 ) Healthstone’s realized income . .............................. \$2,70,000 Realized Income from Icede (160000-32000). ... \$1,28,000 Total Realized Income………………………………………… \$3,98,000 Outside ownership percentage . ............................................ 20% b) Noncontrolling interest in subsidiary's income \$ 79,600 Total Non-controlling Interest to be shown in the books of Gardner Corporation is (a)+(b)=\$32,000+\$79600=\$1,11,600...
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