Angela, Inc., holds a 90 percent interest in Corby Company. During 2017, Corby sold inventory costing $77,000 to Angela for $110,000. Of this inventory, $40,000 worth was not sold to outsiders until 2018. During 2018, Corby sold inventory costing $72,000 to Angela for $120,000. A total of $50,000 of this inventory was not sold to outsiders until 2019. In 2018, Angela reported separate net income of $150,000 while Corby’s net income was $90,000 after excess amortizations. What is the noncontrolling interest in the 2018 income of the subsidiary?a. $8,000b. $8,200c. $9,000d. $9,800

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Q: Matthew owns 30 percent of the outstanding stock of Lindman and has the ability to significantly…

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A: Gross Profit Percentage = (Sales - Cost ) / Sales = ($133,000 - $93,100) / $133,000 = 30%

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A:

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A:

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A: Share in income  = net income  x holding % = 76000*36% = $27,360

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A: Explanation: 1. Paggle Corporation owns 80% of Spillway Inc.'s common stock. So, Paggle Corporation…

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A: Solution:- Preparation of journal entry for the 36 percent income earned by Alamar from this…

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Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.