Mills Corporation owns 90% of Morrow Corporation, and there is no excess cost associated with Mills’s investment in Morrow. During 20X1, Mills reported in the income statement in its “Parent Only” financial statements, in which the investment in Morrow is accounted for under the equity method, that it had sales of $450 million and net income of $200 million. In 20X1, Morrow reported sales of $100 million and net income of $25 million. Mills and Morrow did not have any intercompany transactions in 20X1.
Required:
What amounts does Mills report for the following items in its 20X1 consolidated income statement?
1. Sales.
2. Net income.
3. Net income attributable to noncontrolling interests.
4. Net income attributable to Mills shareholders.
