Use the following information to answer the question(s) below.

Poe Corporation owns an 80% interest in Seri Company acquired at book value several years ago. On January 2, 2013, Seri purchased $100,000 par of Poe's outstanding 10% bonds for $103,000. The bonds were issued at par and mature on January 1, 2016. Straight-line amortization is used. Separate incomes of Poe and Seri for 2013 are $350,000 and $120,000, respectively. Poe uses the equity method to account for the investment in Seri.

-Noncontrolling interest share for 2013 was

Question

Use the following information to answer the question(s) below.

Poe Corporation owns an 80% interest in Seri Company acquired at book value several years ago. On January 2, 2013, Seri purchased $100,000 par of Poe's outstanding 10% bonds for $103,000. The bonds were issued at par and mature on January 1, 2016. Straight-line amortization is used. Separate incomes of Poe and Seri for 2013 are $350,000 and $120,000, respectively. Poe uses the equity method to account for the investment in Seri.

-Noncontrolling interest share for 2013 was

Quizplus · Accepted Answer

The noncontrolling interest share for 2013 is calculated based on the 20% of Seri Company that Poe Corporation does not own. Since Seri's income for 2013 is $120,000, the noncontrolling interest's share is 20% of that, which is $24,000 (0.20 * $120,000).

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