On April 1, Pujols, Inc., exchanges $590,000 fair-value consideration for 70 percent of the outstanding stock of Ramirez Corporation. The remaining 30 percent of the outstanding shares continued to trade at a collective fair value of $234,300. Ramirez’s identifiable assets and liabilities each had book values that equaled their fair values on April 1 for a net total of $700,000. During the remainder of the year, Ramirez generates revenues of $635,000 and expenses of $405,000 and declared no dividends. On a December 31 consolidated balance sheet, what amount should be reported as noncontrolling interest?

Closing NCI = $234,300 + $69,000 = $303,300

Explanation:

The Question is to identify the non-controlling interes in Ramirez Corporation

First we determine the Net income of Ramirez

Net Income = Revenues - Expenses

= $635,000 - $405,000 = $230,000

The next step is to dtermine the value of non -controling interest in teh net income of Ramirez.

Non-Controlling Interest in Net Income = NCI percentge x Net Income

= 30% x $230,000 = $69,000

Finally, based on these calculations , we can compute the Closing Balance of Non-Controlling Interest

The formula = Opening Non-Controlling Interest + Non-controlling Interest Share of Net income

Closing NCI = $234,300 + $69,000 = $303,300

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.