Grasper Corporation owns 60 percent of Latent Corporation’s common stock and 20

Question

Grasper Corporation owns 60 percent of Latent Corporation’s common stock and 20 percent of Dally Corporation’s common stock. In addition, Latent owns 60 percent of Dally’s stock. In 20X6, Grasper, Latent, and Dally reported operating income of $90,000, $65,000, and $45,000 and paid dividends of $45,000, $40,000, and $25,000, respectively.

What amount of consolidated net income will Grasper report for 20X6?

consolidated net income  

What amount of income will be assigned to the noncontrolling interest in the 20X6 consolidated income statement?

income to noncontrolling interest   

What amount of income will be assigned to the controlling interest in the 20X6 income statement?

income to controlling interest

What amount will be reported as dividends declared in Grasper’s 20X6 consolidated retained earnings statement?

dividends declared

Grasper Corporation owns 60 percent of Latent Corporation’s common stock and 20 percent of Dally Corporation’s common stock. In addition, Latent owns 60 percent of Dally’s stock. In 20X6, Grasper, Latent, and Dally reported operating income of $90,000, $65,000, and $45,000 and paid dividends of $45,000, $40,000, and $25,000, respectively.

Explanation / Answer

Grasper Corporation (Figures in $) a What amount of consolidated net income will Grasper report for 20X6? Grasper Latent Dally Consoildated operating income Owns 60% 20% Grasper Latent Dally Consolidated 60% Latent owns 90000 39000 9000 138000 Grasper Latent Dally Answer: Operating Income 90000 65000 45000 138000 Dividends paid 45000 45000 25000 b. What amount of income will be assigned to the noncontrolling interest in the 20X6 consolidated income statement? Noncontrolling interest Latent Dally 27000 Owns 60% of Dally Operating income of 27000 will be assigned to Latent c. What amount of income will be assigned to the controlling interest in the 20X6 income statement? Grasper Latent Dally 48000 39000 9000 d. What amount will be reported as Dividends Declared in Grasper's Consolidated 20X6 Retained Earnings Statement? Dividends Declared Grasper Latent Dally Consolidated 45000 27000 5000 77000

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