Hardev Peabody Company owns 90% of the outstanding capital stock of Sloane Company. During 2014 and 2015 Sloane Company soldmerchandise to Peabody Company at a markup of 25% of selling price. The selling price of the merchandise sold during the two yearswas $40,000 and $27,200, respectively. At the end of each year, Peabody Company had in its inventory one-fourth of the goodspurchased 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 Odecimal places, e.g. 5,125.)Noncontrolling interest in consolidated income+A$20142,600+A20153,338

2014:1. Markup on Sales:Sales: $40,000Markup (25% of sales): $10,0002. Markup on Closing Stock:Since…

Answered: Peabody Company owns 90% of the…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 14P

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