On January 1, 2017, Doone Corporation acquired 70% of the outstanding voting stock of Rockne Company for $672,000 consideration. At the acquisition date, the fair value of the 30% non-controlling interest was $288,000, and Rockne's assets and liabilities had a collective net fair value of $960,000. Doone uses the equity method in its internal records to account for its investment in Rockne. Rockne reports net income of $370,000 in 2021. Since being acquired, Rockne has regularly supplied inventory to Doone at 25% more than cost. Sales to Doone amounted to $430,000 in 2020 and $530,000 in 2021. Approximately 40% of the inventory purchased during any one year is not used until the following year. a. What is the noncontrolling interest's share of Rockne's 2018 income?
b. Prepare Doone's 2018 consolidation entries required by the intra-entity inventory transfers.

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?