Reference no: EM132774382

Question - On January 1, 2019, Maya Company purchased a 90% interest in Jalissa Company for $2,800,000. At that time, Jalissa had $1,840,000 of common stock and $360,000 of retained earnings. The difference between implied and book value was allocated to the following assets of Jalissa Company: Inventory of $ 80,000; Plant and equipment (net) of $240,000; and goodwill of $591,111.

The plant and equipment had a 10-year remaining useful life on January 1, 2019. During 2019, Maya sold merchandise to Jalissa at a 20% markup above cost. At December 31, 2019, Jalissa still had $163420 of merchandise in its inventory that it had purchased from Maya. In 2019, Maya reported net income from independent operations of $1880133, while Jalissa reported net income of $652411. Calculate controlling interest in consolidated net income for 2019.