Following are several figures reported for Preston and Sanchez as of December 31, 2010: LO8 Inventory ..

Sales ..........

Investment income Cost of goods sold Operating expenses Preston

$400,000 800,000 not given 400,000 180,000 Sanchez

$200,000 600,000 300,000 250,000 Preston acquired 70 percent of Sanchez in January 2009, In allocating the newly acquired sub¬ sidiary’s fair value at the acquisition date, Preston noted that Sanchez had developed a customer list worth $65,000 unrecorded on its accounting records and had a five-year remaining life. Any remaining excess fair value over Sanchez’s book value was attributed to goodwill. During 2010, Sanchez sells inventory costing $120,000 to Preston for $160,000. Of this amount, 20 percent remains unsold in Preston’s warehouse at year-end. For Preston’s consolidated reports, determine the following amounts to be reported for the current year.

Inventory Sales Cost of Goods Sold Operating Expenses Noncontrolling Interest in the Subsidiary’s Net Income