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Salt Corporation, a 80%-owned subsidiary of Peanut Corporation, sold inventory items to its parent at a $48,000 profit in 20X2. Peanut resold one-third of this inventory to outside entities. Salt reported net income of $200,000 for 20X2. Non-controlling interest share of consolidated net income that will appear in the income statement for 20X2 is:

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Answer:

$33,600

Explanation:

Calculation for the Non-controlling interest share.

Using this formula

Non-controlling interest share=Net income-(Inventory ×One-third of Inventory)× Percentage of Subsidiary

Let plug in the formula

Non-controlling interest share=$200,000-($48,000×2/3)×(100%-80%)

Non-controlling interest share=$200,000-$32,000×20%

Non-controlling interest share=$168,000×20%

Non-controlling interest share=$33,600

Therefore the Non-controlling interest share of consolidated net income that will appear in the income statement for 20X2 is $33,600

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