What would be any adjustment you would make

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Question - A owns 80% of B. On the date of acquisition, the goodwill was $88,000. This acquisition took place in 2018. In January 1 2020 A sold equipment to B. The book value of this equipment was $100,000. The gain before tax, on this sale, was $50,000. This equipment is being depreciated over the next 15 years, no residual value.

The tax rate for both companies is 40%.

The fiscal year end for both companies is December 31.

In 2020, income before Taxes earned by Company A is $1,000,000; while income before taxes for company B is $350,000.

What would be any adjustment you would make to the NCI taking into consideration the elimination of this intercompany transaction in 2020?

Reference no: EM133020293

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