P 5-2 Computations (upstream sales)

Pop Corporation acquired a 90 percent interest in Son Corporation at book value on January 1, 2016.

Intercompany purchases and sales and inventory data for 2016, 2017, and 2018, are as follows:

Sales by Son to Pop Intercompany Profit in Pop’s Inventory at December 31 2016 $200,000 $15,000 2017 150,000 12,000 2018 300,000 24,000 Selected data from the financial statements of Pop and Son at and for the year ended December 31, 2018, are as follows:

Pop Son Income Statement Sales $900,000 $600,000 Cost of sales 625,000 300,000 Pop Son Expenses 225,000 150,000 Income from Son 124,200 —
Balance Sheet Inventory $150,000 $ 80,000 Retained earnings December 31, 2018 425,000 220,000 Capital stock 500,000 300,000 REQuIRED: Prepare well-organized schedules showing computations for each of the following:
1. Consolidated cost of sales for 2018 2. Noncontrolling interest share for 2018 3. Consolidated net income for 2018 4. Noncontrolling interest at December 31, 2018