On January 1, 2013, Musial Corp

question 11

Essay

On January 1, 2013, Musial Corp. sold equipment to Matin Inc. (a wholly-owned subsidiary) for $168,000 in cash. The equipment originally cost $140,000 but had a book value of only $98,000 when transferred. On that date, the equipment had a five-year remaining life. Depreciation expense was calculated using the straight-line method.
Musial earned $308,000 in net income in 2013 (not including any investment income) while Matin reported $126,000. Assume there is no amortization related to the original investment.
Prepare a schedule of consolidated net income and the share to controlling and non-controlling interests for 2013, assuming that Musial owned only 90% of Matin and the equipment transfer had been upstream

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Definitions:

Outcomes

The results or consequences of actions or experiments that can be measured or observed.

Continuous Intervals

Ranges in mathematics and statistics without any breaks or discrete jumps, often used in calculations involving real numbers.

Real Numbers

A set of numbers that include both rational and irrational numbers, representing all possible magnitude and quantity values.

Probability Mass Function

A function that gives the probability that a discrete random variable is exactly equal to some value.