Apple Inc.owns a 90% interest in Banana Company.Banana Company, in turn, owns a 80% interest in Carrot Company.During 2019, Carrot Company sold $50,000 of merchandise to Apple Inc.at a gross profit of 20%.Of this merchandise, $10,000 was still unsold by Apple Inc.at year end.The adjustment to the controlling interest in consolidated net income for 2019 is ____.
A)$560
B)$1,440
C)$1,600
D)$1,800

Question

Apple Inc.owns a 90% interest in Banana Company.Banana Company, in turn, owns a 80% interest in Carrot Company.During 2019, Carrot Company sold $50,000 of merchandise to Apple Inc.at a gross profit of 20%.Of this merchandise, $10,000 was still unsold by Apple Inc.at year end.The adjustment to the controlling interest in consolidated net income for 2019 is ____.
A)​$560
B)​$1,440
C)​$1,600
D)​$1,800

Quizplus · Accepted Answer

The Answer is B

Apple IncOwns a 90% Interest in Banana Company