Hambly Corp

question 17

Essay

Hambly Corp. owned 80% of the voting common stock of Stroban Co. During 2011, Stroban sold a parcel of land to Hambly. The land had a book value of $82,000 and was sold to Hambly for $145,000. Stroban's reported net income for 2011 was $119,000.
Required:
What was the non-controlling interest's share of Stroban Co.'s net income?

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Definitions:

Ordinance

A piece of legislation enacted by a city or town government dealing with a variety of matters like zoning, safety regulations, and public behavior.

Police Powers

The capacity of the state to regulate behavior and enforce order within its territory, often exercised to protect a community’s health, safety, and welfare.

Federalism

A system of government in which power is divided between a central authority and constituent political units, like states or provinces.

Equal Protection Clause

A clause in the Fourteenth Amendment of the U.S. Constitution that prevents states from denying “the equal protection of the laws” to any citizen. This clause implies that all citizens are created equal.