question archive Potter Corporation and its subsidiary reported consolidated net income of $164,300 for 20X2
Potter Corporation and its subsidiary reported consolidated net income of $164,300 for 20X2
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Potter Corporation and its subsidiary reported consolidated net income of $164,300 for 20X2. Potter owns 70 percent of the common shares of its subsidiary, acquired at book value. Noncontrolling interest was assigned income of $9,000 in the consolidated income statement for 20X2.
Required:
Determine the amount of separate operating income reported by Potter for 20X2.
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Income of the subsidiary = $9,000/(100% - 70%) = $30,000
The amount of operating income reported by potter = $164,300 - $30,000 = $134,300
