Master Products acquired 100 percent ownership of LoCal Bakeries on January 1, 20X3, when the fair value of LoCal's depreciable assets was $50,000 greater than book value. The depreciable assets had an eight-year economic life at the date of the acquisition. 

During 20X3, Master Products purchased a special imported yeast for $35,000 and resold it to LoCal for $50,000. LoCal did not resell any of the yeast before year-end. 

Required 

Determine the amounts to be reported for each of the following items in the consolidated income statement for 20X3:

a. Sales. 

b. Investment income from LoCal Bakeries. 

c. Cost of goods sold. 

d. Depreciation expense.

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Cash Accounts Receivable Inventory Land Buildings and Equipment Less: Accumulated Depreciation Investment in Stargel Enterprises Stock Goodwill Total Assets Accounts Payable Wages Payable Notes Payable Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Beryl Corporation $ 60,000 90,000 120,000 70,000 340,000 (180,000) 110,000 $610,000 $ 75,000 30,000 250,000 7 155,000 $610,000 Stargel Enterprises $ 35,000 50,000 90,000 50,000 220,000 (90,000) $355,000 $ 55,000 20,000 200,000 30,000 50,000 $355,000 Consolidated Entity $ 95,000 130,000 ? 105,000 560,000 (270,000) 30,000 $? 50,000 450,000 100,000 140,000 $ 2