Equity in net income of nartal


Monroe Company owns 40% of the voting stock of Nartal Industries, acquired at book value. Nartal reports income of $600,000 for 2010. Nartal regularly sells merchandise to Monroe at a markup of 30% on cost. Monroe's 2010 beginning inventory includes $156,000 purchased from Nartal. Its 2010 ending inventory includes $260,000 purchased from Nartal. Monroe uses the equity method to report its investment in Nartal. Equity in net income of Nartal for 2010 is ??

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Accounting Basics: Equity in net income of nartal
Reference No:- TGS061233

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