Select the correct answer for each of the following questions Blue Company purchased 60 percent ownership of Kelly Corporation in 20X1 On May 10,20X2, Kelly purchased inventory from Blue for $60,000 Kelly sold all of the inventory to an unaffiliated company for $86,000 on November 10, 20X2 Blue pro...

1 c The only sales recorded are sales to nonaffiliates 2 b The ...

Select the correct answer for each of the following questions. Blue Company purchased 60 percent ownership of

Question:

Select the correct answer for each of the following questions.
Blue Company purchased 60 percent ownership of Kelly in 20X1. On May 10,20X2, Kelly purchased inventory from Blue for $60,000. Kelly sold all of the inventory to an unaffiliated company for $86,000 on November 10, 20X2. Blue produced the inventory sold to Kelly for $47,000. The companies had no other transactions during 20X2.
1. What amount of sales will be reported in the 20X2 ?
a. $51,600.
b. $60,000.
c. $86,000.
d. $146,000.
2. What amount of cost of goods sold will be reported in the 20X2 ?
a. $36,000.
b. $47,000.
c. $60,000.
d. $107,000.
3. What amount of consolidated net income will be assigned to the controlling shareholders for 20X2?
a. $13,000.
b. $26,000.
c. $28,600.
d. $39,000.

Consolidated Income Statement
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