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Chain Co. owned 70% of the voting common stock of Shannon Co. During 2010, Shannon made frequent sales of inventory to Chain. There were unrealized gains of $40,000 in the beginning inventory, and $25,000 at the end of the year. Shannon reported net income of $137,000 for 2010. Chain decided to use the equity method to account for the investment. What is the noncontrolling interest's share of Shannon's net income for 2010?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M971749

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