On January 1, 2018, Chandler purchased 80% of the outstanding shares of Joey at a cost of $96,000. On that date, Joey had $60,000 accumulated profits and $60,000 outstanding shares. On the same date,...


On January 1, 2018, Chandler purchased 80% of the outstanding shares of Joey at a cost of $96,000. On that date, Joey had $60,000  accumulated profits and $60,000 outstanding shares. On the same date, Chandler sold an equipment (useful life of five years from date of sale) to Joey for $12,000. The book value of the equipment on that date was $14,400.


For the year, Chandler had reported an income of $33,600 from its own operations and paid dividends of $18,000. Joey, on the other hand, reported $6,400 income and paid dividends of $3,600.


Included in Chandler's income is the loss of $2,400 on the sale of equipment on January 1.


All of the assets and liabilities of Joey have book values equal to their market value.



Determine the Non-controlling interest in the net assets of Subsidiary on December 31, 2018.



Jun 01, 2022
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