Race decided to use the equity method to account for this, Ask an Expert

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On January 1, 2009, Race Corp. acquired 80% of the voting common stock of Gallow Inc. During the year, Race sold to Gallow for $450,000 goods which cost $330,000. Gallow still owned 15% of the goods at year-end. Gallow's reported net income was $204,000 and Race's net income was $806,000. Race decided to use the equity method to account for this investment. What was the non-controlling interest's share of consolidated net income?

• $37,200

• $22,800

• $30,900

• $32,900

• $40,800

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Accounting Basics, Accounting

Category:- Accounting Basics
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