Pentagon Company acquired 90% of Smoker Company's common stock for $1,300,000 and 40% of its preferred stock for $300,000. 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 102% of par value. Dividends were not paid during 2015. During 2016, Smoker Company reported net income of $200,000 and declared and paid cash dividends in the amount of $120,000. Noncontrolling interest in the 2016 reported net income of Smoker Company is:

Question

Pentagon Company acquired 90% of Smoker Company's common stock for $1,300,000 and 40% of its preferred stock for $300,000. 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 102% of par value. Dividends were not paid during 2015. During 2016, Smoker Company reported net income of $200,000 and declared and paid cash dividends in the amount of $120,000. Noncontrolling interest in the 2016 reported net income of Smoker Company is:

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The Answer of Pentagon Company acquired 90% of Smoker Company's common stock for $1,300,000 and 40% of its preferred stock for $300,000. 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 102% of par value. Dividends were not paid during 2015. During 2016, Smoker Company reported net income of $200,000 and declared and paid cash dividends in the amount of $120,000. Noncontrolling interest in the 2016 reported net income of Smoker Company is:

Pentagon Company Acquired 90% of Smoker Company's Common Stock for $1,300,000