Chapter 9 – Consolidation Ownership Issues
E9-8 Multilevel Ownership
a.
Consolidated net income for 20X6 is $190,000 ($90,000 + $40,000
+ $60,000)
b.
Income of $36,800 is assigned to the noncontrolling interest:
Income from Dally ($40,000 x 0.35)
$14,000
Income from Latent [($60,000 + $16,000) x 0.30]
22,800
Total income assigned to noncontrolling interest
$36,800
c.
Income of $153,200 is assigned to the controlling interest:
Consolidated net income
$190,000
Less: Income assigned to noncontrolling interest
(36,800)
Income assigned to controlling interest
$153,200
d.
Only the $45,000 of dividends paid by Grasper Corporation to its
shareholders will be reported as dividends declared in Grasper’s
20X6 consolidated retained earnings statement.
