“a 707 interest in Ann Compary and Ann owns. a Separate incomes Corporation « both Required at 4 fair value equal +0 book value “eutstment Ineame) of the 4wo _afpiltates {or 2020 are = oe Tiwi 4 5/200, 000 Aan § 2,000, c00 Determine the Controting share op Consulidated net income for 2020 using he Conventional _ eer eea hy _ Answer TY income of Tiwi on q antolidated paris A» income of Ann on a cansolidated tasis Separste income of 4 S,em,c00 4 70% of A Separate income of $ 2v0ap,600 + 207% of T ¥ S,000-000 + 407. (41000,000 + 20% T) T= $5,000,000 + $100,000 + OT (1-0.W)T = $6,400, c00 0.86 T = $6,400,000 T+ $F,4q1,860_ Sentcotting share of contoliclated det income = F441 860 x 207.@ Tw Compooy, acquired & 407 Interesy in Ann Corporation at Woou clue equal to fair valve -on_Jenvery t 20t0 During the year, Ang cold — #190,000 (wintory Heme to Tiwi and at __Pecenber ror, vneralired propits amounted te 4 80/400, Separate incomes of 7 ____ for _t020 were — 45,000 and $400,000. Determine consolidated net inceme gor Time Emgang Ane _Sepsidiocy yader the parte - compong therry of —Centolidation Med separate income of Tian ard Ann $900,000 Less .- Tiwi “share of neealned profits gee oe upstceom inventory sates (} 5% x 707) ( 3,000.) es _____+ Noncontcotting interest shace ($120,000 3072) (20,0009 $945,000 Consolidated get income