Please do not give solution in image format ? And Fast answering please and explain proper steps by Step. On January 1, 2020, Doone Corporation acquired 70 percent of the outstanding voting stock of Rockne Company for$462,000 consideration. At the acquisition date, the fair value of the 30 percent noncontrolling interest was $198,000, andRockne's assets and liabilities had a collective net fair value of $660,000. Doone uses the equity method in its internalrecords to account for its investment in Rockne. Rockne reports net income of $220,000 in 2021. Since being acquired,Rockne has regularly supplied inventory to Doone at 25 percent more than cost. Sales to Doone amounted to $280,000 in2020 and $380,000 in 2021. Approximately 40 percent of the inventory purchased during any one year is not used untilthe following year.a. What is the noncontrolling interest's share of Rockne's 2021 income?b. Prepare Doone's 2021 consolidation entries required by the intra-entity inventory transfers.Complete this question by entering your answers in the tabs below.Required A Required BWhat is the noncontrolling interest's share of Rockne's 2021 income?Noncontrolling interest's share Prepare Doone's 2021 consolidation entries required by the intra-entity inventory transfers. (If no entry is required for atransaction/event, select "No journal entry required" in the first account field.)view transaction listConsolidationWorksheet Entries12Prepare entry *GNote: Enter debits before credits.Transaction1Record entryAccountsClear entryDebitCreditview consolidation entries

Non-controlling interest share refers to the ownership interest in a company that is held by parties…

On January 1, 2020, Doone Corporation acquired 70 percent of the outstanding voting stock of Rockne Company for $462,000 consideration. At the acquisition date, the fair value of the 30 percent noncontrolling interest was $198,000, and Rockne's assets and liabilities had a collective net fair value of $660,000. Doone uses the equity method in its internal records to account for its investment in Rockne. Rockne reports net income of $220,000 in 2021. Since being acquired, Rockne has regularly supplied inventory to Doone at 25 percent more than cost. Sales to Doone amounted to $280,000 in 2020 and $380,000 in 2021. Approximately 40 percent of the inventory purchased during any one year is not used until he following year. a. What is the noncontrolling interest's share of Rockne's 2021 income? b. Prepare Doone's 2021 consolidation entries required by the intra-entity inventory transfers.

On January 1, 2020, Doone Corporation acquired 70 percent of the outstanding voting stock of Rockne Company for $462,000 consideration. At the acquisition date, the fair value of the 30 percent noncontrolling interest was $198,000, and Rockne's assets and liabilities had a collective net fair value of $660,000. Doone uses the equity method in its internal records to account for its investment in Rockne. Rockne reports net income of $220,000 in 2021. Since being acquired, Rockne has regularly supplied inventory to Doone at 25 percent more than cost. Sales to Doone amounted to $280,000 in 2020 and $380,000 in 2021. Approximately 40 percent of the inventory purchased during any one year is not used until he following year. a. What is the noncontrolling interest's share of Rockne's 2021 income? b. Prepare Doone's 2021 consolidation entries required by the intra-entity inventory transfers.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 8MC

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On January 1, 2020, Doone Corporation acquired 80 percent of the outstanding voting stock of Rockne Company for $544,000 consideration. At the acquisition date, the fair value of the 20 percent noncontrolling interest was $136,000, and Rockne's assets and liabilities had a collective net fair value of $680,000. Doone uses the equity method in its internal records to account for its investment in Rockne. Rockne reports net income of $230,000 in 2021. Since being acquired, Rockne has regularly supplied inventory to Doone at 25 percent more than cost. Sales to Doone amounted to $290,000 in 2020 and $390,000 in 2021. Approximately 30 percent of the inventory purchased during any one year is not used until the following year. What is the noncontrolling interest's share of Rockne's 2021 income? Prepare Doone's 2021 consolidation entries required by the intra-entity inventory transfers.
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