Noncontrolling interest in the income of the subsidiary


Problem:

Please assist with the given problem involving financial statements.

Hardwood, Inc., holds a 90 percent interest in Pittstoni Company. During 2009, Pittstoni sold inventory costing $77,000 to Hardwood for $110,000. Of this inventory, $40,000 worth was not sold to outsiders until 2010. During 2010, Pittstoni sold inventory costing $72,000 to Hardwood for $120,000. A total of $50,000 of this inventory was not sold to outsiders until 2011. In 2010, Hardwood reported net income of $150,000 while Pittstoni reported $90,000. What is the noncontrolling interest in the 2010 income of the subsidiary?

a) 8,000

b) 8,200

c) 9,000

d) 9,800

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Accounting Basics: Noncontrolling interest in the income of the subsidiary
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