Presented below is information related to Viel Company at December 31, 2014, the
ID: 2378287 • Letter: P
Question
Presented below is information related to Viel Company at December 31, 2014, the end of its first year of operations.
Compute the following:
a) Income from operations
b) Net Income
c) Net income from attributable to Viel Company's controlling shareholds
d) Comprehensive income
e) Retained earnings balance at December 31, 2014
$304,760
Cost of goods sold
143,470
Selling and administrative expenses
52,520
Gain on sale of plant assets
28,570
Unrealized gain on available-for-sale investments
11,270
Interest expense
6,360
Loss on discontinued operations
11,190
Allocation to noncontrolling interest
40,740
Dividends declared and paid
4,980
Explanation / Answer
a) Sales Revenue - Cost of Goods Sold - Selling and admin exp + gain on sale plant assets
304,760 - 143,470 - 52,520 + 28,570 = 137,340
b) Income from operations - interest expense - loss on discounted ops
137,340 - 6,360 - 11,190 = 119,790
c) Net income - allocation to non-controlling interest
137,340 - 40,740 = 96,600
d) Net income - dividends declared and paid
137,340 - 4,980 = 132,360