On January 1, 2014, Sharon Company, a 60% owned corporation of Polly Company, sells a building with a book value of 300,000 to Polly for 350,000. At the time of the sale, the building has an estimated remaining life of 10 years, no salvage value. If Sharon reports a net income of 1,000,000 in 2014, non-controlling interest in net income will be: A. 402,000 B. 380,000 C. 400,000 D. 382,000
On January 1, 2014, Sharon Company, a 60% owned corporation of Polly Company, sells a building with a book value of 300,000 to Polly for 350,000. At the time of the sale, the building has an estimated remaining life of 10 years, no salvage value. If Sharon reports a net income of 1,000,000 in 2014, non-controlling interest in net income will be: A. 402,000 B. 380,000 C. 400,000 D. 382,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 8MC
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On January 1, 2014, Sharon Company, a 60% owned corporation of Polly Company, sells a building with a book value of 300,000 to Polly for 350,000. At the time of the sale, the building has an estimated remaining life of 10 years, no salvage value. If Sharon reports a net income of 1,000,000 in 2014, non-controlling interest in net income will be:
A. 402,000
B. 380,000
C. 400,000
D. 382,000
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