Paint Corporation owns 60 percent of Stain Company’s shares. Partial 20X2 financial data for the companies and consolidated entity were as follows:

On January 1, 20X2, Paint’s inventory contained items purchased from Stain for $75,000. The cost of the units to Stain was $50,000. All intercorporate sales during 20X2 were made by Stain to Paint.

Required

a. What amount of intercorporate sales occurred in 20X2?

b. How much unrealized intercompany profit existed on January 1, 20X2? On December 31, 20X2?

c. Give the worksheet consolidation entries relating to inventory and cost of goods sold needed to prepare consolidated financial statements for 20X2.

d. If Stain reports net income of $90,000 for 20X2, what amount of income is assigned to the noncontrolling interest in the 20X2 consolidated income statement?

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Sales Cost of Goods Sold Inventory, Dec. 31 Paint Corporation $550,000 310,000 180,000 Stain Company $450,000 300,000 210,000 Consolidated Totals $820,000 420,000 375,000