Block Corporation was created on January 1, 20X0, to develop computer software. On January 1, 20X5, Foster Company purchased 90 percent of the common stock of Block Corporation at underlying book value. Trial balances for Foster Company and Block Corporation on December 31, 20X9, are as follows:

On January 1, 20X7, Block Corporation sold equipment to Foster Company for \(\$ 48,000\). The equipment had been purchased for \(\$ 90,000\) on January 1, 20X5, by Block Company and was depreciated on a straight-line basis with an expected life of 10 years and no anticipated scrap value. The total expected life of the equipment is unchanged as a result of the intercompany transfer.
During 20X9. Block Corporation produced inventory for \(\$ 20,000\) and sold it to Foster Company for \(\$ 30.000\). Foster resold 60 percent of the inventory in \(20 \mathrm{X} 9\). Also in \(20 \mathrm{X} 9\), Foster sold inventory purchased from Block in 20X8. It had cost Block \(\$ 60,000\) to produce the inventory, and Foster purchased it for \(\$ 75.000\).
\section*{Required}

a. What amount of cost of goods sold will be reported in the \(20 \mathrm{X} 9\) consolidated income statement?

b. What inventory balance will be reported in the December \(31,20 \mathrm{X} 9\), consolidated balance sheet?

c. What amount of income will be assigned to noncontrolling shareholders in the \(20 \times 9\) consolidated income statement?

d. What amount will be assigned to noncontrolling interest in the consolidated balance sheet prepared at December 31, 20X9?
\(e\). What amount of retained earnings will be reported in the consolidated balance sheet at December 31, 20X9?

f. Give all eliminating entries required to prepare a three-part consolidated working paper at December 31, 20X9.

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Foster Company Item Debit Credit 20X9 Trial Balance Data Block Corporation Debit Credit Cash $ 187.000 $ 57,400 Accounts Receivable 80,000 90,000 Other Receivables 40.000 Inventory 137,000 10,000 130,000 Land 80,000 60,000 Buildings and Equipment 500,000 250,000 Investment in Block Corporation Stock 238.500 Cost of Goods Sold 593,000 270.000 Depreciation Expense 45,000 15,000 Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Other Payables Bonds Payable 95,000 75.000 40.000 20,000 $ 155,000 $ 75.000 63,000 35,000 95,000 20.000 250,000 200.000 Bond Premium Other Income Common Stock Additional Paid-In Capital Retained Earnings Sales Income from Subsidiary 210,000 110,000 248.500 815,000 26.000 2.400 50,000 165.000 415,000 15,000 63.000 Total $2,035.500 $2.035.500 $977,400 $977,400