On January 1,2011,Fly Corporation Held a 60% Interest in Liptin

On January 1,2011,Fly Corporation held a 60% interest in Liptin Corporation.The investment account balance was $2,100,000,consisting of 60% of Liptin's $3,500,000 of net assets.
During 2011,Liptin earned $300,000 uniformly and paid dividends of $110,000 on November 1.On October 1,2011,Fly sold 10% of its investment in Liptin for $364,000,thereby reducing its interest in Liptin to 54%.
Required: Compute the following using the actual sales date assumption:
1.Gain or loss on sale.
2.Income from Liptin for 2011.
3.Noncontrolling interest share for 2011.

Correct Answer:

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