Q:

Phelps Co. uses the sophisticated equity method to account for the 80% investment in its subsidiary Shore Corp

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Phelps Co. uses the sophisticated equity method to account for the 80% investment in its subsidiary Shore Corp. At the time of the acquisition, the fair values of the net asset required approximated their book values. Based upon the following information, what amount of income is attributable to the noncontrolling interest?


  1. $10,000
  2. $9,000
  3. $11,000
  4. $7,000

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B. $9,000

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