Select the correct answer for each of the following questions.
Amber Corporation holds 80 percent of the stock of Movie Productions Inc. During 20X4, Amber purchased an inventory of snack bar items for $40,000 and resold $30,000 to Movie Productions for $48,000. Movie Productions Inc. reported sales of $67,000 in 20X4 and had inventory of $16,000 on December 31, 20X4. The companies held no beginning inventory and had no other transactions in 20X4.
1. What amount of cost of goods sold will be reported in the 20X4 consolidated income statement?
a. $20,000.
b. $30,000.
c. $32,000.
d. $52,000.
e. $62,000.
2. What amount of net income will be reported in the 20X4 consolidated income statement?
a. $12,000.
b. $18,000.
c. $40,000.
d. $47,000.
e. $53,000.
3. What amount of income will be assigned to the noncontrolling interest in the 20X4 consolidated income statement?
a. $7,000.
b. $8,000.
c. $9,400.
d. $10,200.
e. $13,400.