Determine the consolidated income

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Question - Moe Company purchased 80% of Curley Company stock for $500,000.  At the time of the purchase, Curley Company had a book value was $400,000 with the excess being caused by equipment being undervalued by $60,000 and the rest from goodwill. The equipment has a four year life.  Moe sold inventory last year to Curley for a profit of $10,000 which was in their inventory at the beginning of this year.  Moe also sold inventory to Curley at a profit of $12,000 which is in the inventory of Curley at the end of the current year. The separate income reported by Moe was $150,000 and by Curley was $80,000.

Required - Determine the consolidated income, the controlling interest share, and the non-controlling interest share.

Reference no: EM132875840

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