Business, 31.12.2020 19:30 jahmanilittlejotz1pe

Powell Company owns 75% of the outstanding common stock of Sullivan Company. Powell Company uses cost method. In 2014-2016, the following events occurred. 1. On January 1, 2014, Sullivan Company sold land to Powell Company for $413,900. S Company originally purchased the land for $590,900.
2. On June 30, 2015, Sullivan Company sold equipment to Powell Company for $481,400. The equipment cost Sullivan Company $721,800 and had accumulated depreciation of $410,000 on the date of the sale. The management of Powell Company estimated that the equipment had a remaining useful life of five years from June 30, 2014.
3. On January 1, 2016, Powell Company sold the land purchased from Sullivan Company to a company outside the affiliated group for $690,300.

Also we have following information for Powell and Sullivan Co.

2014 2015 2016

Powell company's NI in Powell's book 273,100 384,000 20,000
Sullivan's NI 293,800 194,000 25,000
Sullivan's Dividends 345,920 204,700 28,000

For 2014, 2015 and 2016, determine Ni att. to Powell (In the exam pool, we had this as the controlling interest in consolidated net income). It is obvious that you need to show consolidated net income and NCI income.

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Powell Company owns 75% of the outstanding common stock of Sullivan Company. Powell Company uses cos...

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