Parker Company owns 90% of the outstanding common stock of Stagger Company. On January 1, 2014, Stagger Company issued $500,000, 12%, ten-year bonds. On January 1, 2016, Parker Company paid $315,000 for Stagger Company bonds with a par value of $300,000 and a carrying value of $297,600. Both companies use the straight-line method to amortize bond premiums and discounts. Parker Company accounts for the investment using the cost method of accounting.
Compute the noncontrolling interest in the 2016 consolidated income assuming that Parker Company reported a net income of $240,000 (includes dividend income from Stagger Company). Stagger Company reported net income of $150,000 and declared and paid cash dividends of $90,000.

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The Answer of Parker Company owns 90% of the outstanding common stock of Stagger Company. On January 1, 2014, Stagger Company issued $500,000, 12%, ten-year bonds. On January 1, 2016, Parker Company paid $315,000 for Stagger Company bonds with a par value of $300,000 and a carrying value of $297,600. Both companies use the straight-line method to amortize bond premiums and discounts. Parker Company accounts for the investment using the cost method of accounting.
Compute the noncontrolling interest in the 2016 consolidated income assuming that Parker Company reported a net income of $240,000 (includes dividend income from Stagger Company). Stagger Company reported net income of $150,000 and declared and paid cash dividends of $90,000.

Parker Company Owns 90% of the Outstanding Common Stock of Stagger