Calculate the adjusted consolidated net income

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Reference no: EM133492976

Case: Errant acquired sufficient shares of Grub on January 1, 2021 to obtain control.

The net incomes for Errant and Grub for the year ended December 31, 2021 were $150,000 and $90,000 respectively. Grub paid $8,000 in dividends to Errant during the year. Moreover, an impairment test conducted on December 31, 2021 revealed that the Goodwill should actually have a value of $20,000. Both companies use a FIFO system, and all of Grub's inventory on the date of acquisition was sold during the year.

Assume that 80% was acquired. As well assume consolidated goodwill was $23,000, and the book value of Grub's inventory was $16,000 greater than fair value.

Question: Calculate the adjusted consolidated net income for December 31, 2021. Remember to clearly show the amount of net income attributable to the non-controlling interest. Ignore the impact of taxes.

Reference no: EM133492976

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