Gargiulo Company, a 90% Owned Subsidiary of Posito Corporation, Sells

question 112

Multiple Choice

Gargiulo Company, a 90% owned subsidiary of Posito Corporation, sells inventory to Posito at a 25% profit on selling price. The following data are available pertaining to intra-entity purchases. Gargiulo was acquired on January 1, 2010. Assume the equity method is used. The following data are available pertaining to Gargiulo's income and dividends. Compute the non-controlling interest in Gargiulo's net income for 2011.

• A) $8,500.
• B) $8,570.
• C) $8,430.
• D) $8,400.
• E) $7,580.

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