Asked by Yolanda Albino on May 22, 2024
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Jull Corp. owned 80% of Solaver Co. Solaver paid $250,000 for 10% of Jull's common stock. In 2021, Jull and Solaver reported separate net incomes (not including income from the investment) of $300,000 and $80,000, respectively. Jull and Solaver declared dividends of $120,000 and $50,000, respectively.Required:Under the treasury stock approach, what is the net income attributable to the noncontrolling interest?
Treasury Stock Approach
A method of accounting for repurchased shares of a company's own stock, treating them as treasury stock and reducing the company's equity.
Noncontrolling Interest
The portion of equity in a subsidiary not attributable to the parent company, representing outside investors' ownership.
Net Income
The total earnings of a company after subtracting all expenses from revenue.
- Compute and elucidate net income designated for both majority and minority stakeholders.
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AG
Learning Objectives
- Compute and elucidate net income designated for both majority and minority stakeholders.