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Question - ACCOUNTING FOR BUSINESS COMBINATION - Sanchez Company acquired inventories on June 1, 2021 from its 60% owned subsidiary, Black Corporation. The inventories were sold for P285,000, including the 20% mark up on cost. Out of these inventories, 70% were sold to outsiders during the current year and the rest was sold in 2022. During 2022, Sanchez Company reported net income of P880,000 and Black Corporation reported net income of P560,000.
Required -
1. How much is the non-controlling interest in net income of subsidiary for 2022?
2. How much of the realized profit is to be allocated to non controlling interest in 2022?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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