E 5-9 Compute noncontrolling interest and consolidated cost of sales (upstream sales)

Income statement information for 2016 for Pam Corporation and its 60 percent–owned subsidiary, Sun Corporation, is as follows:

Pam Sun Sales $900 $350 Cost of sales 400 250 Gross profit 500 100 Operating expenses 250 50 Sun’s net income $ 50 Pam’s separate income $250 Intercompany sales for 2016 are upstream (from Sun to Pam) and total $100,000. Pam’s December 31, 2015, and December 31, 2016, inventories contain unrealized profits of $5,000 and $10,000, respectively.

REQuIRED 1. Compute noncontrolling interest share for 2016.

2. Compute consolidated sales, cost of sales, and total consolidated net income for 2016.