Peabody Company owns 90% of the outstanding capital stock of Sloane Company. During 2014 and 2015 Sloane Company sold merchandise to Peabody Company at a markup of 25% of selling price. The selling price of the merchandise sold during the two years was $40,000 and $27,200, respectively. At the end of each year, Peabody Company had in its inventory one-fourth of the goods purchased that year from Sloane Company. Sloane Company reported net income of $28,500 in 2014 and $35,080 in 2015. Determine the amount of the noncontrolling interest in consolidated income to be reported for 2014 and 2015. (Round answers to O decimal places, e.g. 5,125.) Noncontrolling interest in consolidated income +A $ 2014 2,600 +A 2015 3,338

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
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Peabody Company owns 90% of the outstanding capital stock of Sloane Company. During 2014 and 2015 Sloane Company sold
merchandise to Peabody Company at a markup of 25% of selling price. The selling price of the merchandise sold during the two years
was $40,000 and $27,200, respectively. At the end of each year, Peabody Company had in its inventory one-fourth of the goods
purchased that year from Sloane Company. Sloane Company reported net income of $28,500 in 2014 and $35,080 in 2015.
Determine the amount of the noncontrolling interest in consolidated income to be reported for 2014 and 2015. (Round answers to O
decimal places, e.g. 5,125.)
Noncontrolling interest in consolidated income
+A
$
2014
2,600
+A
2015
3,338
Transcribed Image Text:Peabody Company owns 90% of the outstanding capital stock of Sloane Company. During 2014 and 2015 Sloane Company sold merchandise to Peabody Company at a markup of 25% of selling price. The selling price of the merchandise sold during the two years was $40,000 and $27,200, respectively. At the end of each year, Peabody Company had in its inventory one-fourth of the goods purchased that year from Sloane Company. Sloane Company reported net income of $28,500 in 2014 and $35,080 in 2015. Determine the amount of the noncontrolling interest in consolidated income to be reported for 2014 and 2015. (Round answers to O decimal places, e.g. 5,125.) Noncontrolling interest in consolidated income +A $ 2014 2,600 +A 2015 3,338
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