On January 1, 2011, Adam Corporation purchased a 90% interest in Rodney Corporation.On January 1, 2011, Rodney Corporation purchased an 80% interest in Ben Corporation.
In all investment acquisitions, the cost of the interest was equal to the book value of the interest and the fair value of the interest.The following information is available for 2011:
The separate net incomes do not include investment income.
Required:
1.What is controlling interest share of consolidated net income for 2011?
2.What is noncontrolling interest shares of consolidated net income for 2011?

Question

On January 1, 2011, Adam Corporation purchased a 90% interest in Rodney Corporation.On January 1, 2011, Rodney Corporation purchased an 80% interest in Ben Corporation.
In all investment acquisitions, the cost of the interest was equal to the book value of the interest and the fair value of the interest.The following information is available for 2011:
  The separate net incomes do not include investment income.
Required:
1.What is controlling interest share of consolidated net income for 2011?
2.What is noncontrolling interest shares of consolidated net income for 2011?

Quizplus · Accepted Answer

The Answer of On January 1, 2011, Adam Corporation purchased a 90% interest in Rodney Corporation.On January 1, 2011, Rodney Corporation purchased an 80% interest in Ben Corporation.
In all investment acquisitions, the cost of the interest was equal to the book value of the interest and the fair value of the interest.The following information is available for 2011:
  The separate net incomes do not include investment income.
Required:
1.What is controlling interest share of consolidated net income for 2011?
2.What is noncontrolling interest shares of consolidated net income for 2011?

On January 1, 2011, Adam Corporation Purchased a 90% Interest