Essay
On January 1,2013,Starling Corporation held an 80% interest in Twig Corporation and the investment account balance was $900,000.On January 1,2013,Twig's total stockholders' equity was $1,125,000.
During 2013,Twig uniformly earned $234,000 and paid dividends of $37,500 on April 1 and again on October 1.On August 1,2013,Starling sold 30% of its investment in Twig for $262,500,thereby reducing its interest in Twig to 56%.
Required: Compute the following using the actual sales date assumption:
1.Gain or loss on sale.
2.Income from Twig for 2013.
3.Noncontrolling interest share for 2013.
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