Norek Corp. owned 70% of the voting common stock of Thelma Co. On January 2, 2012, Thelma sold a parcel of land to Norek. The land had a book value of $32,000 and was sold to Norek for $45,000. Thelma's reported net income for 2012 was $119,000. What is the non-controlling interest's share of Thelma's net income?
A) $35,700.
B) $31,800.
C) $39,600.
D) $22,200.
E) $26,100.

Question

Quizplus · Accepted Answer

Sales Price $45,000 - BV $32,000 = Gain on Sale $13,000Sub's Net Income $119,000 - Gain on Sale $13,000 = Adjusted Net Income $106,000 × Sub's Interest 30% = $31,800