The Coca-Cola Company owns 40 percent of the voting stock of
Coca-Cola FEMSA, acquired at book value. Assume that Coca-Cola
FEMSA reports income of $6 million for 2013. Coca-Cola FEMSA
regularly sells canned beverages to Coca-Cola at a markup of 42
percent on cost. During 2013 Coca-Cola FEMSA's sales to Coca-Cola
totaled $30 million. Coca-Cola's January 1, 2013, inventories
include $1,620,000 purchased from Coca-Cola FEMSA. Coca-Cola's
December 31, 2013, inventories include $1,458,000 purchased from
Coca-Cola FEMSA. Prepare the 2013 journal...