Portland Inc. (Portland) owns 80% of Seattle Inc. (Seattle) and uses the cost method to account for its investment. The 2023 income statements of both companies are shown below. Portland Gross profit Miscellaneous revenues (losses) Depreciation expense Income tax expense Net Income $100,000 (30,000) (20,000) (20,000 $30,000 Seattle Multiple Choice $2,340 $1,260 $1,200 $2,700 $50,000 (20,000) (15,000) (6,000) $9,000 On January 1, 2023, Seattle acquired equipment for $7,000 and sold it the same day to Portland for $12,000. The equipment had a remaining useful life of 10 years on that date. Both companies are subject to an effective tax rate of 40%. Which of the following is the correct amount of consolidated net income attributable to the noncontrolling interest in Portland's 2023 consolidated income statement?
Portland Inc. (Portland) owns 80% of Seattle Inc. (Seattle) and uses the cost method to account for its investment. The 2023 income statements of both companies are shown below. Portland Gross profit Miscellaneous revenues (losses) Depreciation expense Income tax expense Net Income $100,000 (30,000) (20,000) (20,000 $30,000 Seattle Multiple Choice $2,340 $1,260 $1,200 $2,700 $50,000 (20,000) (15,000) (6,000) $9,000 On January 1, 2023, Seattle acquired equipment for $7,000 and sold it the same day to Portland for $12,000. The equipment had a remaining useful life of 10 years on that date. Both companies are subject to an effective tax rate of 40%. Which of the following is the correct amount of consolidated net income attributable to the noncontrolling interest in Portland's 2023 consolidated income statement?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 7P
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