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Renz Co. acquired 80% of the voting common stock of Sogers Corp. on January 1, 2020....

Renz Co. acquired 80% of the voting common stock of Sogers Corp. on January 1, 2020. During 2020, Sogers had revenues of $2,900,000 and expenses of $2,400,000. The amortization of fair value allocations totaled $60,000 in 2020. Not including its investment in Sogers, Renz Co. had its own revenues of $5,800,000 and expenses of $3,200,000 for the year 2020.

The noncontrolling interest's share of the earnings of Sogers Corp. for 2020 is calculated to be

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Computation of Non controlling interest's share of earnings of Sogers Corp. for 2020
Particulars Amount ($)
Revenue        29,00,000
Less: Expenses        24,00,000
Profit           5,00,000
Less: Amortization of fair value allocations              60,000
Total Earnings           4,40,000
Non controlling interest's share 20%
Non controlling interest's share of earnings of Sogers Corp.
(4,40,000 * 20%) = $ 88,000		              88,000
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