On January 1,2011,Palling Corporation Purchased 70% of the Common Stock

question 37

Essay

On January 1,2011,Palling Corporation purchased 70% of the common stock of Sam's Storage Systems for $320,000 when Sam's had Common Stock outstanding of $100,000 and Retained Earnings of $200,000.Any excess differential was attributed to goodwill.
At the end of 2011,Palling and Sam's had unrealized inventory profits from intercompany sales of $6,000 and $8,000,respectively.These year-end profit amounts were realized in 2012.At the end of 2012,Palling held inventory acquired from Sam's with a $10,000 unrealized profit.Palling reported separate income of $100,000 for 2012 and paid dividends of $30,000.Sam's reported separate income of $70,000 for 2012 and paid dividends of $20,000.
Required:
Compute the controlling interest share of consolidated net income for 2012.

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Definitions:

Expected Value

The anticipated value for an investment or probability-weighted average of all possible values in a probabilistic scenario.

Total Wealth

The complete sum of an individual's or entity's assets and resources, including both tangible and intangible assets, subtracting any debts owed.

Insurance

A financial product that provides protection against potential financial losses or liabilities in exchange for a premium payment.

Expected Wealth

The anticipated sum of money an individual or entity predicts to hold in the future, based on current assets, income sources, and investment strategies.