Pisa Company owns 75 percent of the stock of Siena Company on January 1, 20X3. During 20X3, Siena purchased inventory for $35,000 and sold it to Pisa for $50,000. Or this amount, Pisa reported $20,000 in ending inventory in 20X3 and later sold it in 20X4. In 20X4, Pisa sold inventory it had purchased for $40,000 to Siena for $60,000, Siena sold $45,000 of this inventory in 20X4. Assume Siena reported net income of $200,000 for 20X4, the amount of income assigned to noncontrolling shareholders in the 20X4 consolidated income statements would be: O $50,250. O $50,000. O $51,500. O $48,500.

Pisa Company owns 75 percent of the stock of Siena Company on January 1, 20X3. During 20X3, Siena purchased inventory for $35,000 and sold it to Pisa for $50,000. Or this amount, Pisa reported $20,000 in ending inventory in 20X3 and later sold it in 20X4. In 20X4, Pisa sold inventory it had purchased for $40,000 to Siena for $60,000, Siena sold $45,000 of this inventory in 20X4. Assume Siena reported net income of $200,000 for 20X4, the amount of income assigned to noncontrolling shareholders in the 20X4 consolidated income statements would be: O $50,250. O $50,000. O $51,500. O $48,500.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 44P

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