Peabody Company owns 90% of the outstanding capital stock of Sloane Company. During 2014 and 2015 Sloane Company sold merchandise to Peabody Company at a markup of 25% of selling price. The selling price of the merchandise sold during the two years was $42,400 and $24,000, respectively. At the end of each year, Peabody Company had in its inventory one-fourth of the goods purchased that year from Sloane Company. Sloane Company reported net income of $29,300 in 2014 and $35,300 in 2015. Required:Determine the amount of the noncontrolling interest in consolidated income to be reported for 2014 and 2015.

Amount of noncontrolling interest in consolidated income to be reported in 2014 = $2,718

Amount of noncontrolling interest in consolidated income to be reported in 2015 = $3,410

Explanation:

Percentage of the unsold inventory = One-fourth = 1 / 4 = 0.25, or 25%

Percentage of noncontrolling interest = 100% - 90% = 10%

Unrealized profit on inventory = Selling price of the merchandise * Percentage of the unsold inventory * (Markup / (100% + Markup)) ……………. (1)

Amount of noncontrolling interest in consolidated income to be reported = (Reported net income by Sloane - Unrealized profit on inventory) * Percentage of noncontrolling interest ……………. (2)

Using equation (1), we have:

Unrealized profit on inventory in 2014 = $42,400 * 25% * (25% / (100% + 25%)) = $2,120

Unrealized profit on inventory in 2015 = $24,000 * 25% * (25% / (100% + 25%)) = $1,200

Using equation (2), we have:

Amount of noncontrolling interest in consolidated income to be reported in 2014 = ($29,300 - $2,120) * 10% = $2,718

Amount of noncontrolling interest in consolidated income to be reported in 2015 = ($35,300 - $1,200) * 10% = $3,410

answer; /// the correct answer is (10) days; /// good luck

due to the changes the federal reserve is making the unused reserves will impact the economy by them facing inflation. inflation is definfed as the increase in pricing of a good or service but the decline of the value of money used for purchasing those items. when the economy has a high inflation rate, they are subject to money loss and hurt on the economy.