Explore BrainMass

Explore BrainMass

    NCI Sale of Fixed Asset by Subsidiary to Holding Company

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    On January 1, 2008, Adam Company sold equipment with a book value of $40,000 and a remaining economic life of 10 years to Aldor Company for $95,000. Aldor Company owns 90 percent of the outstanding voting common stock of Adam. During 2008, Adam reported net income of $70,000 and paid dividends of $10,000; Aldor reported net income of $115,000. Par's 2008 consolidated income statement would show income to the non-controlling interest of:

    © BrainMass Inc. brainmass.com June 4, 2020, 1:22 am ad1c9bdddf
    https://brainmass.com/business/accounting/nci-sale-fixed-asset-subsidiary-holding-company-396201

    Solution Summary

    This solution includes a calculation of non-controlling interest performed in Excel with explanations of the answers.

    $2.19

    ADVERTISEMENT