Chase Company owns 80% of Lawrence Company and 40% of Ross Company. Lawrence Com
ID: 2416678 • Letter: C
Question
Chase Company owns 80% of Lawrence Company and 40% of Ross Company. Lawrence Company also owns 30% of Ross Company. Separate operating incomes for 2013 of Chase, Lawrence, and Ross are $450,000, $300,000, and $250,000, respectively. Each company also retains a $20,000 unrealized gain in their current income figures. Annual amortization expense of $15,000 is assigned to Chase's investment in Lawrence and another $15,000 is assigned to Lawrence's investment in Ross. Compute the non-controlling interest in Ross' net income for 2013. $64,500. $69,000. $75,000. $92,000. $77,400.
Explanation / Answer
Answer is A $64,500
$250,000 - $20,000 - $15,000 = $215,000 × 0.30 = $64,500