Parson Company acquired an 80 percent interest in Syber Company on January 1, 2017. Any portion of Syber's business fair value in excess of its corresponding book value was assigned to trademarks. This intangible asset has subsequently undergone annual amortization based on a 15-year life. Over the past two years, regular intra-entity inventory sales transpired between the two companies. No payment has yet been made on the latest transfer. All dividends are paid in the same period as declared.
The individual financial statements for the two companies as well as consolidated totals for 2018 follow:

a. What method does Parson use to account for its investment in Syber?
b. What is the balance of the intra-entity inventory gross profit deferred at the end of the current period?
c. What amount was originally allocated to the trademarks?
d. What is the amount of the current year intra-entity inventory sales?
e. Were the intra-entity inventory sales made upstream or downstream?
f. What is the balance of the intra-entity liability at the end of the current year?
g. What amount of intra-entity gross profit was deferred from the preceding period and recognized in the current period?
h. How was the ending Noncontrolling Interest in Syber Company computed?
i. With a tax rate of 40 percent, what income tax journal entry is recorded if the companies prepare a consolidated tax return?
j. With a tax rate of 40 percent, what income tax journal entry is recorded if these two companies prepare separate tax returns?

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Parson Company Syber Company Consolidated Totals Sales Cost of goods sold Operating expenses Income of Syber $ (800,000) $(600,000) $(1,280,000) 400,000 100,000 500,000 100,000 4,8 784,000 202,500 Separate company net Income $ (274,8 100 Consolidated net Income Net Income attributable to $ (293,500) 18,700 noncontrolling Interest Net Income attributable to Parson Company Retalned earnings, 1/1/18 Net Income (above Dividends declared. $(611,600) $(290,000) $(611,600) (274,800) 70,000 (274,800) (100,000) 70,000 30,000 816.400 60000 816.400 Retalned earnings, 12/31/18 Cash and recelvables Inventory Investment In Syber Company Land, bulldings, and equipment Trademarks 358,000 338,000 $ 298,000 190,000 368,400 380,000 80,000 160,000 260,000 640,000 32,500 $1,236,400 $ 500,000 $1.368,500 Total assets Llabilities Common stock Additional pald-n capital Noncontrolling Interest In Syber Retalned earnings (above). $ (270,000) $(60,000 (310,000) (80,000) (120,000) (30,000) (120,000) (30,000) (92,100) 816.400) (360,000) (816,400) Total labllities and equitles 1,236,4 1,368