8) Separate earnings and investment percentages for three affiliates for 2011 are as follows:
SeparatePercentage InterestPercentage Interest
Earnings in Acres in Bain
Assume the investments were acquired at a cost equal to the book value of each investment, which also equals the fair value. Separate earnings do not include investment income.
1. Calculate revised net incomes for Palace, Acres, and Bain by using the conventional method.
2. Determine the controlling interest share of consolidated net income and the noncontrolling interest shares.