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Question - On January 1, 2014, Petr SA purchased half of Lenka SA's outstanding 10 percent bond for $550,000 cash. Petr SA was the 80 percent-owned subsidiary of Lenka SA with no book value/fair value difference. At that time, the outstanding bonds had a par value of $1,000,000 with $200,000 unamortized discount. The bonds mature on January 1, 2019. At the end of year 2014, Petr SA reported net income of $500,000.
REQUIRED -
1. Calculate income from Petr SA for 2014.
2. Calculate noncontrolling interest share for 2014.
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