Problem
Jensen Corporation sells a machine to its 80 percent subsidiary, Dukes Enterprises for $120,000 on March 1, 2015. At that date, the machine and accumulated depreciation accounts on Jensen's financial records are $260,000 and $80,000, respectively. The machine has a remaining life of six years for Jensen and is assigned a life of ten years when acquired by Dukes.
Required:
a. Record the worksheet elimination for the intercompany transaction assuming that the consolidation occurs on December 31, 2015.
b. What is the income to noncontrolling interest in 2015 if Dukes has reported net income of $184,000?