In: Accounting
Player Company acquired 70 percent ownership of Scout Company’s voting shares on January 1, 20X2. During 20X5, Player purchased inventory for $29,000 and sold the full amount to Scout Company for $39,000. On December 31, 20X5, Scout’s ending inventory included $7,800 of items purchased from Player. Also in 20X5, Scout purchased inventory for $52,000 and sold the units to Player for $82,000. Player included $20,500 of its purchase from Scout in ending inventory on December 31, 20X5. Summary income statement data for the two companies revealed the following: Player Company Scout Company Sales $ 360,750 $ 210,000 Income from Scout 48,750 $ 409,500 $ 210,000 Cost of Goods Sold $ 233,000 $ 105,000 Other Expenses 65,000 25,000 Total Expenses $ (298,000 ) $ (130,000 ) Net Income $ 111,500 $ 80,000
Required:
a. Compute the amount to be reported as sales in the 20X5 consolidated income statement.
b. Compute the amount to be reported as cost of goods sold in the
20X5 consolidated income statement.
c. What amount of income will be assigned to the noncontrolling
shareholders in the 20X5 consolidated income statement?
d. What amount of income will be assigned to the controlling
interest in the 20X5 consolidated income statement?