P Company owns an 80% interest in S Company. During 2017, S sells merchandise to P for $150,000 at a profit of $30,000. On December 31, 2017, 50% of this merchandise is included in P's inventory. Income statements for P and S are summarized below: Noncontrolling interest in income for 2017 is:
A) $3,000.
B) $14,400.
C) $15,000.
D) $18,000.

Question

P Company owns an 80% interest in S Company. During 2017, S sells merchandise to P for $150,000 at a profit of $30,000. On December 31, 2017, 50% of this merchandise is included in P's inventory. Income statements for P and S are summarized below:  Noncontrolling interest in income for 2017 is:
A) $3,000. 
B) $14,400. 
C) $15,000. 
D) $18,000.

Quizplus · Accepted Answer

The Answer of P Company owns an 80% interest in S Company. During 2017, S sells merchandise to P for $150,000 at a profit of $30,000. On December 31, 2017, 50% of this merchandise is included in P's inventory. Income statements for P and S are summarized below:  Noncontrolling interest in income for 2017 is:
A) $3,000. 
B) $14,400. 
C) $15,000. 
D) $18,000.

P Company Owns an 80% Interest in S Company