Gargiulo Company, a 90% owned subsidiary of Posito Corporation, sells inventory to Posito at a 25% profit on selling price. The following data are available pertaining to intra-entity purchases. Gargiulo was acquired on January 1, 2010. Assume the equity method is used. The following data are available pertaining to Gargiulo's income and dividends. Compute the non-controlling interest in Gargiulo's net income for 2010.
A) $6,970.
B) $7,000.
C) $7,030.
D) $6,270.
E) $6,230.

Question

Gargiulo Company, a 90% owned subsidiary of Posito Corporation, sells inventory to Posito at a 25% profit on selling price. The following data are available pertaining to intra-entity purchases. Gargiulo was acquired on January 1, 2010.  Assume the equity method is used. The following data are available pertaining to Gargiulo's income and dividends.  Compute the non-controlling interest in Gargiulo's net income for 2010.
A) $6,970. 
B) $7,000. 
C) $7,030. 
D) $6,270. 
E) $6,230.

Quizplus · Accepted Answer

The Answer of Gargiulo Company, a 90% owned subsidiary of Posito Corporation, sells inventory to Posito at a 25% profit on selling price. The following data are available pertaining to intra-entity purchases. Gargiulo was acquired on January 1, 2010.  Assume the equity method is used. The following data are available pertaining to Gargiulo's income and dividends.  Compute the non-controlling interest in Gargiulo's net income for 2010.
A) $6,970. 
B) $7,000. 
C) $7,030. 
D) $6,270. 
E) $6,230.

Gargiulo Company, a 90% Owned Subsidiary of Posito Corporation, Sells