Paik Corporation owns 80% of Acdol Corporation and 60% of Ben Corporation.Acdol Corporation owns 10% of Ben Corporation.All subsidiary investments were acquired at book value.There are no fair value/book value differentials associated with each investment.Separate net incomes (excluding investment income)of the affiliated companies for 2014 are:
$$\text { Paik: } \quad \$ 600,000 \text { which includes \$60,000 unrealized losses on inventcry items sold to Ben }$$ $$\text { Acdol: } \quad\$ 360,000$$ $$\text { Ben: } \quad \$ 340,000 \text { whirh includes } \$ 100,000 \text { unrealized profit on land sold to Acdol }$$ Required:
Determine controlling interest share of consolidated net income and noncontrolling interest shares for Paik Corporation and Subsidiaries for 2014.

Question

Paik Corporation owns 80% of Acdol Corporation and 60% of Ben Corporation.Acdol Corporation owns 10% of Ben Corporation.All subsidiary investments were acquired at book value.There are no fair value/book value differentials associated with each investment.Separate net incomes (excluding investment income)of the affiliated companies for 2014 are:
 $$\text { Paik: } \quad \$ 600,000 \text { which includes \$60,000 unrealized losses on inventcry items sold to Ben }$$ $$\text { Acdol: } \quad\$ 360,000$$ $$\text { Ben: } \quad \$ 340,000 \text { whirh includes } \$ 100,000 \text { unrealized profit on land sold to Acdol }$$ Required:
Determine controlling interest share of consolidated net income and noncontrolling interest shares for Paik Corporation and Subsidiaries for 2014.

Quizplus · Accepted Answer

The Answer of Paik Corporation owns 80% of Acdol Corporation and 60% of Ben Corporation.Acdol Corporation owns 10% of Ben Corporation.All subsidiary investments were acquired at book value.There are no fair value/book value differentials associated with each investment.Separate net incomes (excluding investment income)of the affiliated companies for 2014 are:
 $$\text { Paik: } \quad \$ 600,000 \text { which includes \$60,000 unrealized losses on inventcry items sold to Ben }$$ $$\text { Acdol: } \quad\$ 360,000$$ $$\text { Ben: } \quad \$ 340,000 \text { whirh includes } \$ 100,000 \text { unrealized profit on land sold to Acdol }$$ Required:
Determine controlling interest share of consolidated net income and noncontrolling interest shares for Paik Corporation and Subsidiaries for 2014.

Paik Corporation Owns 80% of Acdol Corporation and 60% of Ben