Chapter 4: Q4-4ISTQ (page 198)
The non-controlling interest section of the income statement is:
(a) required under GAAP but not under IFRS.
(b) required under IFRS but not under GAAP.
(c) required under IFRS and GAAP.
(d) not reported under GAAP or IFRS.
Option c is the correct answer.
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Discuss the appropriate treatment in the income statement for the following items:
(a) Loss on discontinued operations.
(b) Non-controlling interest allocation.
Tim Mattke Company began operations in 2015 and for simplicity reasons, adopted weighted-average pricing for inventory. In 2017, in accordance with other companies in its industry, Mattke changed its inventory pricing to FIFO. The pretax income data is reported below.
Year Weighted Average FIFO
2015
2016 390,000 \(430,000
2017 410,000 \)450,000
Instructions
Show comparative income statements for Tim Mattke Company, beginning with income before income tax, as presented on the 2017 income statement.
The following information was taken from the records of Roland Carlson Inc. for the year 2017: income tax applicable to income from continuing operations
Gain on sale of equipment \)95,000 Cash dividends declared $150,000
Loss on discontinued operations75,000 Retained earnings January1,2017 600,000
Administrative expenses 240,000 Cost of goods sold 850,000
Rent revenue 40,000 Selling expenses 300,000
Loss on write-down of inventory 60,000 Sales revenue 1,900,000
Shares outstanding during 2017 were 100,000.
Instructions
Presented below are certain account balances of Paczki Products Co.
Rent revenue
Interest expense
Beginning retained earnings
Ending retained earnings
Dividend revenue
Sales returns and allowances
Allocation to non controlling interest $17,000
Instructions
From the foregoing, compute the following: (a) total net revenue, (b) net income, (c) dividends declared, and (d) income attributable to controlling stockholders.
Starr Co. had sales revenue of \(540,000 in 2017. Other items recorded during the year were:
Cost of goods sold \)330,000
Salaries and wages expense 120,000
Income tax expense 25,000
Increase in value of company reputation 15,000
Other operating expenses 10,000
Unrealized gain on value of patents 20,000
Prepare a single-step income statement for Starr for 2017. Starr has 100,000 shares of stock outstanding.
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