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PPP acquired 70% of SSS for 270,000 on January 1, 2015 when Subsidiary RE 100,000 and capital 200,000. SSS net income December 2015 was 80,000 PPP net income was 90,000. During the year Subsidiary has sold land to its parent, and which resulted in 20,000 unrealized gain on land. Cost land was 40,000 and he sold it for 60,000.
Problem 1: When parent is eliminating the income for Non-Controlling interest, entries will have:
A) Credit to Non-Controlling Interest-Income by 6,000 B) Debit to Non-Controlling Interest-Income by 6,000C) Credit to Non-Controlling Interest-Income by 18,000D) Debit to Non-Controlling Interest-Income by 18,000
Financial Statement Analysis and Preparation
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