Q1. X-Beams Inc. owned 70% of the voting common stock of Kent Corp. During 2009, Kent made several sales of inventory to X-Beams. The total selling price was $180,000 and the cost was $100,000. At the end of the year, 20% of the goods were still in X-Beams' inventory. Kent's reported net income was $300,000. What was the non-controlling interest in Kent's net income?
a. $90,000
b. $85,200
c. $54,000
d. $94,800
e. $86,640
Q2. Bauerly Co. owned 70% of the voting common stock of Devin Co. During 2009, Devin made frequent sales of inventory to Bauerly. There were unrealized gains of $40,000 in the beginning inventory and $25,000 at the end of the year. Devin reported net income of $137,000 for 2009. Bauerly decided to use the equity method to account for the investment. What is the non-controlling interest's share of Devin's net income for 2009?
a. $41,100
b. $33,600
c. $21,600
d. $45,600
e. $36,600
Q3. Chain Co. owned all of the voting common stock of Shannon Corp. The corporation's balance sheets dated December 31, 2009, include the following balances for land: for Chain - $416,000 and for Shannon - $256,000. On the original date of acquisition, the book value of Shannon's land was equal to its fair value. On April 4, 2010, Chain sold to Shannon a parcel of land with a book value of $65,000. The selling price was $83,000. There were no other transactions which affected the companies' land accounts during 2010. What is the consolidated balance for land on the 2010 balance sheet?
a. $672,000
b. $690,000
c. $755,000
d. $737,000
e. $654,000