Vision Corporation acquired 75 percent of the stock of Meta Company on January 1,2007,for $225,000.At that date,the fair value of the noncontrolling interest was $75,000.Meta's balance sheet contained the following amounts at the time of the combination:
During each of the next three years,Meta reported net income of $30,000 and paid dividends of $10,000.On January 1,2009,Vision sold 1,500 shares of Meta's $10 par value shares for $60,000 in cash.Vision used the basic equity method in accounting for its ownership of Meta Company.

-Based on the preceding information,in the elimination entries to complete a full consolidation workpaper for 2009,Income to Noncontrolling Interest will be credited for:

Question

Vision Corporation acquired 75 percent of the stock of Meta Company on January 1,2007,for $225,000.At that date,the fair value of the noncontrolling interest was $75,000.Meta's balance sheet contained the following amounts at the time of the combination:
During each of the next three years,Meta reported net income of $30,000 and paid dividends of $10,000.On January 1,2009,Vision sold 1,500 shares of Meta's $10 par value shares for $60,000 in cash.Vision used the basic equity method in accounting for its ownership of Meta Company.
 
-Based on the preceding information,in the elimination entries to complete a full consolidation workpaper for 2009,Income to Noncontrolling Interest will be credited for:

Quizplus · Accepted Answer

Income to Noncontrolling Interest is credited for the amount of the noncontrolling interest's share of the subsidiary's net income. In this case, the noncontrolling interest owns 25% of the subsidiary, so its share of the subsidiary's net income is $12,000 (25% x $48,000).

Vision Corporation Acquired 75 Percent of the Stock of Meta