Polish Company acquired 90% of Sandwich Company's common stock for $780,000 and 40% of its preferred stock for $180,000. On January 1, 2016, the date of acquisition, the companies reported the following account balances: The preferred stock is 10%, cumulative, nonparticipating, and has a liquidation value equal to 104% of par value. Dividends were not paid during 2015. During 2016, Sandwich Company reported net income of $120,000 and declared and paid cash dividends in the amount of $70,000. Noncontrolling interest in the 2016 reported net income of Sandwich Company is:

Question

Polish Company acquired 90% of Sandwich Company's common stock for $780,000 and 40% of its preferred stock for $180,000. On January 1, 2016, the date of acquisition, the companies reported the following account balances:  The preferred stock is 10%, cumulative, nonparticipating, and has a liquidation value equal to 104% of par value. Dividends were not paid during 2015. During 2016, Sandwich Company reported net income of $120,000 and declared and paid cash dividends in the amount of $70,000. Noncontrolling interest in the 2016 reported net income of Sandwich Company is:

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The Answer of Polish Company acquired 90% of Sandwich Company's common stock for $780,000 and 40% of its preferred stock for $180,000. On January 1, 2016, the date of acquisition, the companies reported the following account balances:  The preferred stock is 10%, cumulative, nonparticipating, and has a liquidation value equal to 104% of par value. Dividends were not paid during 2015. During 2016, Sandwich Company reported net income of $120,000 and declared and paid cash dividends in the amount of $70,000. Noncontrolling interest in the 2016 reported net income of Sandwich Company is:

Polish Company Acquired 90% of Sandwich Company's Common Stock for $780,000