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Reporting as noncontrolling interest in the subsidiary's net income and preacquisition income?

On April 1, 2004, Guns, Inc., purchases 70 percent of the outstanding stock of Roses Corporation for $430,000. The subsidiary's book value on that date was $500,000. Any excess cost was attributable to goodwill. During 2004, Roses generates revenues of $600,000 and expenses of $360,000.

Both figures occur evenly throughout the year. On a December 31, 2004 consolidated income statement, what should be reported as the noncontrolling interest in the subsidiary's net income and as preacquisition income?

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Roses' Net income: 600,000 - 360,000 = 240,000
Figures occur evenly throughout the year means that ...

Solution Summary

Whether figures should be reported as non-controlling interest in the subsidiary's net income and preacquisition income is discussed.

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