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    Webb Co. and Norek Corp.

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    14. Webb Co. purchased 100% of Rand Inc. on January 5, 2003. During 2003, Webb sold Rand for $2,400,000 goods that cost $1,900,000. Rand still owned 40% of the goods at the end of the year. Cost of goods sold was $10,800,000 for Webb and $6,400,000 for Rand. What was consolidated cost of goods sold?
    A) $17,200,000
    B) $15,000,000
    C) $14,600,000
    D) $19,400,000
    E) $14,800,000

    15. Norek Corp. owned 70% of the voting common stock of Thelma Co. On January 2, 2003, Thelma sold a parcel of land to Norek. The land had a book value of $32,000 and was sold to Norek for $45,000. Thelma's reported net income for 2003 was $119,000. What is the noncontrolling interest's share of Thelma's net income?
    A) $35,700
    B) $31,800
    C) $39,600
    D) $22,200
    E) $26,100

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    Solution Preview

    Goods Sold & Net Income

    14. Webb Co. purchased 100% of Rand Inc. on January 5, 2003. During 2003, Webb sold Rand for $2,400,000 goods that cost $1,900,000. Rand still owned 40% of the goods at the end of the year. Cost of goods sold was $10,800,000 for ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer what was consolidated cost of goods sold for Webb Co. and what is the noncontrolling interest's share of Thelma's net income.

    $2.19

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