Walmart acquired 80% of Sam's Club on 1/1/16. During 2016, Walmart made many inventory sells to Sam's Club. The cost of goods was $865,000 and sales price of goods was $983,000. Sam's Club still owned 1/2 of the goods at the end of 2016. Consolidated cost of goods sold for 2016 was $3,256,430 due to consolidation adjustments for intra-entity transfers less intra-entity gross profit in Sam's Club ending inventory. How would the net income attributable to the noncontrolling interest differ if the transfers used the above information for Upstream? 983,000-865,000=118,000 118,000*1/2=59,000 59,000*20%=11,800 3,256,430*20%=651,286 651,286-11,800=639,486 net income attributable to noncontrolling interest
Walmart acquired 80% of Sam's Club on 1/1/16. During 2016, Walmart made many inventory sells to Sam's Club. The cost of goods was $865,000 and sales price of goods was $983,000. Sam's Club still owned 1/2 of the goods at the end of 2016. Consolidated cost of goods sold for 2016 was $3,256,430 due to consolidation adjustments for intra-entity transfers less intra-entity gross profit in Sam's Club ending inventory.
How would the net income attributable to the noncontrolling interest differ if the transfers used the above information for Upstream?
983,000-865,000=118,000
118,000*1/2=59,000
59,000*20%=11,800
3,256,430*20%=651,286
651,286-11,800=639,486 net income attributable to noncontrolling interest
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