Sweeny Corporation owns 60 percent of the shares of Bitner Company. Partial 20X2 financial data for the companies and consolidated entity were as follows:

On January 1, 20X2, the inventory of Sweeny Corporation contained items purchased from Bitner Company for \(\$ 75,000\). The cost of the units to Bitner Company was \(\$ 50,000\). All intercorporate sales during 20X2 were made by Bitner Company to Sweeny Corporation.
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 workpaper eliminating entries relating to inventory and cost of goods sold needed to prepare consolidated financial statements for \(20 \times 2\).

d. If Bitner Company reports net income of \(\$ 90,000\) for \(20 \times 2\), what amount of income is assigned to the noncontrolling interest in the \(20 \times 2\) consolidated income statement?

Transcribed Image Text:

Sweeny Corporation Bitner Company Consolidated Totals Sales $550,000 $450,000 $820,000 Cost of Goods Sold 310.000 300,000 420.000 Inventory, Dec. 31 180,000 210,000 375,000