Reference no: EM131772764

Q1. X-Beams Inc. owned 70% of the voting common stock of Kent Corp. During 2009, Kent made several sales of inventory to X-Beams. The total selling price was $180,000 and the cost was $100,000. At the end of the year, 20% of the goods were still in X-Beams' inventory. Kent's reported net income was $300,000. What was the non-controlling interest in Kent's net income?

a. $90,000

b. $85,200

c. $54,000

d. $94,800

e. $86,640

Q2. Bauerly Co. owned 70% of the voting common stock of Devin Co. During 2009, Devin made frequent sales of inventory to Bauerly. There were unrealized gains of $40,000 in the beginning inventory and $25,000 at the end of the year. Devin reported net income of $137,000 for 2009. Bauerly decided to use the equity method to account for the investment. What is the non-controlling interest's share of Devin's net income for 2009?

a. $41,100

b. $33,600

c. $21,600

d. $45,600

e. $36,600

Q3. Chain Co. owned all of the voting common stock of Shannon Corp. The corporation's balance sheets dated December 31, 2009, include the following balances for land: for Chain - $416,000 and for Shannon - $256,000. On the original date of acquisition, the book value of Shannon's land was equal to its fair value. On April 4, 2010, Chain sold to Shannon a parcel of land with a book value of $65,000. The selling price was $83,000. There were no other transactions which affected the companies' land accounts during 2010. What is the consolidated balance for land on the 2010 balance sheet?

a. $672,000

b. $690,000

c. $755,000

d. $737,000

e. $654,000