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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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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