Hambly Corp

question 119

Essay

Hambly Corp.owned 80% of the voting common stock of Stroban Co.During 2018, Stroban sold a parcel of land to Hambly.The land had a book value of $82,000 and was sold to Hambly for $145,000.Stroban's reported net income for 2018 was $119,000.Required:
Assuming there are no other intra-entity transactions nor excess amortizations, What was the net income attributable to the noncontrolling interest of Stroban?

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Definitions:

Unit Cost

The cost incurred to produce, acquire, or distribute one unit of a product or service.

Inventoriable Costs

Costs that are included in the value of inventory and recognized as cost of goods sold when the inventory is sold.

Cost of Goods

The immediate expenses incurred in the production of a company's sold goods, covering both the cost of labor and materials used.

Consigned Goods

Goods that are given to a third party to sell, but ownership remains with the supplier until sold.