Business
Business, 06.06.2020 16:59, PLEASEHELP4528

Preparing a consolidated income statement - with noncontrolling interest, but no AAP or intercompany profits A parent company purchased an 80% interest in its subsidiary several years ago with no AAP (i. e., purchased at book value). Each reports the following income statement for the current year. Parent Subsidiary Income statement: Sales $5,000,000 $750,000 Cost of goods sold 3,500,000 450,000 Gross profit 1,500,000 300,000 Income (loss) from subsidiary 84,000 0 Operating expenses 950,000 195,000 Net income $634,000 $105,000 a. Compute the Income (loss) from subsidiary of $84,000 reported by the parent company.

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Preparing a consolidated income statement - with noncontrolling interest, but no AAP or intercompany...

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