Tooker CoAcquired 80% of the Outstanding Common Shares of Vu Ltd

question 27

Multiple Choice

Tooker Co.acquired 80% of the outstanding common shares of Vu Ltd.There were no fair value increments or goodwill that arose with the purchase.During 20X1,Tooker sold $7,000 of inventory to Vu for a gross profit of 40%.At the end of 20X1,$3,000 of the inventory is still in Vu's inventory.On their single-entity income statements for 20X1,Tooker and Vu reported net income of $4,200 and $3,100 respectively.What is the non-controlling interest's share of consolidated net income at the end of 20X1?

• A)$620
• B)$840
• C)$1,220
• D)$1,460

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