On January 1,2014,Palling Corporation Purchased 70% of the Common Stock

question 35

Essay

On January 1,2014,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 2014,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 2015.At the end of 2015,Palling held inventory acquired from Sam's with a $10,000 unrealized profit.Palling reported separate income of $100,000 for 2015 and paid dividends of $30,000.Sam's reported separate income of $70,000 for 2015 and paid dividends of $20,000.
Required:
Compute the controlling interest share of consolidated net income for 2015.

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Definitions:

Loanable Funds

The money available for borrowing in the financial market.

Equilibrium Rate

The price or point at which the quantity of a good or service supplied matches the quantity demanded.

Loanable Funds

The market where savers supply funds for loans to borrowers, often influenced by interest rates.

National Saving

The total amount of savings generated within a country, including both private savings by households and public savings by the government.