0 Parson Company acquired an 80 percent interest in Syber Company on January 1, 2017. Any portion of Syber's business foir value in excess of its corresponding book value was assigned to trademarks. This intangible asset has subsequently undergone annual amortization based on a 15-year life. Over the past two years, regular intra-entity inventory sales transpired between the two companies. No payment has yet been made on the latest transfer. All dividends are paid in the same period as declared. The individual financial statements for the two companies as well as consolidated totals for 2018 follow: Parson Syber Consolidated Company Company Totals Sales $ (910,000) $ (710,000) $(1,478,000) Cost of goods sold 555,000 455,000 873,000 Operating expenses 122,000 133,000 258,500 Income of Syber (91,300) 0 Separate company net income $ (324,300) $ (122,000) Consolidated net income $ (346,500) Net income attributable to noncontrolling interest 22,200 Net income attributable to Parson $ Company (324,300) Retained earnings, 1/1/18 5 (628, 100) $ (312,000) (628,100) Net Income (above) (324,300) (122,000) (324,300) Dividends declared 60,000 41,000 60,000 Retained earnings, 12/31/18 $ (892,400) $ (393, 000) S (892,400) Cash and receivables $ 408,000 91,000 474,800 Inventory 201,000 182,000 368,000 Investment in Syber Company 422.400 Land, buildings, and equipment 402.000 293,000 695,000 Trademarks 0 0 32.500 Total assets $ 1,433,400 $566,000 $ 1,570,300 Liabilities $ (325,000) $(103,000) $ (363,700) Common stock (175,000) (70,000) Additional paid in capital (175,000) (41,000) (41,000) S $ $ 0 0 Net income attributable to Parson Company Retained earnings, 1/1/18 Net income (above) Dividends declared Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Syber Company Land, buildings, and equipment Trademarks Total assets Liabilities Common stock Additional paid-in capital Noncontrolling interest in Syber Retained earnings (above) Total liabilities and equities $ (628, 100) (324,300) 60,000 $ (892,400) $ 408,000 201,000 422,400 402,000 0 $ 1,433,400 $ (325,000) (175,000) (41.000) 0 (892,400) $ (1,433,400) $ (312,000) (122,000) 41,000 $(393, 000) $ 91,000 182,000 0 293,000 0 $ 566,000 $ (103,000) (70,000) 0 0 (393,000) $ (566,000) $ (324,300) $ (628,100) (324,300) 60,000 $ (892,400) $ 474,800 368,000 0 695,000 32,500 $ 1,570,300 $ (363,700) (175,000) (41,000) (98,200) (892,400) $(1,570,300) a. What method does Parson use to account for its investment in Syber? b. What is the balance of the intra-entity inventory gross profit deferred at the end of the current period? c. What amount was originally allocated to the trademarks? d. What is the amount of the current year intra-entity inventory sales? e. Were the intra-entity inventory sales made upstream or downstream? f. What is the balance of the intra-entity liability at the end of the current year? g. What amount of intra-entity gross profit was deferred from the preceding period and recognized in the current period? h. What was the ending Noncontrolling Interest in Syber Company computed? 1. With a tax rate of 40 percent, what income tax journal entry is recorded if the companies prepare a consolidated tax return? J. With a tax rate of 40 percent, what income tax journal entry is recorded if these two companies prepare separate tax returns? Reg A to Regland a. What method does Parson use to account for its investment in Syber? b. What is the balance of the intra-entity inventory gross profit deferred at the end of the current period? What amount was originally allocated to the trademarks? d. What is the amount of the current year intra-entity inventory sales? e. Were the intra-entity inventory sales made upstream or downstream? f. What is the balance of the intra-entity liability at the end of the current year? 9. What amount of intro-entity gross profit was deferred from the preceding period and recognized in the current period? h. What was the ending Noncontrolling Interest in Syber Company computed? Show less b d. Method that Parson is to account for its investment Balance of the intra-entity inventory gross profit Amount located to trademarks Current year intra-entity inventory sales Intra-ently inventory sales made ance of the intra-entity liability Intra-entity gross profit was deferred from the preceding period Ending noncontrolling interest L. With a tax rate of 40 percent, what income tax journal entry is recorded if the companies prepare a consolidated tax return? J. With a tax rate of 40 percent, what income tax journal entry is recorded if these two companies prepare separate tax returns? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less View transaction list X 1 Record the income tax expense. 2 Record the income tax expense for Parson 3 Record the income tax expense for Syber Credit Note - Journal entry has been entered Parson Company acquired an 80 percent interest in Syber Company on January 1, 2017. Any portion of Syber's business fair value in excess of its corresponding book value was assigned to trademarks. This intangible asset has subsequently undergone annual amortization based on a 15-year life. Over the past two years, regular intra-entity inventory sales transpired between the two companies. No payment has yet been made on the latest transfer. All dividends are paid in the same period as declared. The individual financial statements for the two companies as well as consolidated totals for 2018 follow: $ Parson Company (910,000) 555,000 122,000 (91,300) (324,300) Syber Company $ (710,000) 455,000 133,000 0 $ (122,000) Consolidated Totals $ (1,478,000) 873,000 258,500 0 $ (346,500) 22, 200 Sales Cost of goods sold Operating expenses Income of Syber Separate company net income Consolidated net income Net Income attributable to noncontrolling interest Net Income attributable to Parson Company Retained earningo, 1/1/18 Net Income (above) Dividends declared Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Syber Company $ S $ (628,100) (324,300) 60,000 (892,400) 408,000 201,000 422,400 $ (324,300) (628,100) (324,300) 60,000 (892,400) 474,800 368,000 0 $ (312,000) (122,000) 41,000 $ (393,000) S 91,000 182,000 D $ $ Inventory Investment in Syber Company Land, buildings, and equipment Trademarks Total assets Liabilities Common stock Additional paid-in capital Noncontrolling interest in Syber Retained earnings (above) Total liabilities and equities 201,000 422,400 402,000 0 $ 1,433,400 $ (325,000) (175,000) (41,000) 0 (892,400) $ (1,433,400) 182,000 0 293,000 0 $ 566,000 $ (103,000) (70,000) 0 0 (393,000) $ (566,000) 368,000 0 695,000 32,500 $ 1,570,300 $ (363,700) (175,000) (41,000) (98, 200) (092,400) $ (1,570,300) a. What method does Parson use to account for its investment in Syber? b. What is the balance of the intra-entity inventory gross profit deferred at the end of the current period? c. What amount was originally allocated to the trademarks? d. What is the amount of the current year intra-entity inventory sales? e. Were the intra-entity Inventory sales made upstream or downstream? f. What is the balance of the intra entity liability at the end of the current year? g. What amount of intra-entity gross profit was deferred from the preceding period and recognized in the current period? h. What was the ending Noncontrolling Interest in Syber Company computed? 1. With a tax rate of 40 percent, what income tax Journal entry is recorded if the companies prepare a consolidated tax return? J. With a tax rate of 40 percent, what income tax journal entry is recorded if these two companies prepare separate tax returns? Reg A to Regland a. What method does Parson use to account for its investment in Syber? b. What is the balance of the intra-entity inventory gross profit deferred at the end of the current period? What amount was originally allocated to the trademarks? d. What is the amount of the current year intra-entity inventory sales? e. Were the intra-entity inventory sales made upstream or downstream? f. What is the balance of the intra-entity liability at the end of the current year? 9. What amount of intro-entity gross profit was deferred from the preceding period and recognized in the current period? h. What was the ending Noncontrolling Interest in Syber Company computed? Show less b d. Method that Parson is to account for its investment Balance of the intra-entity inventory gross profit Amount located to trademarks Current year intra-entity inventory sales Intra-ently inventory sales made ance of the intra-entity liability Intra-entity gross profit was deferred from the preceding period Ending noncontrolling interest Reg A to H Reg I and J i. With a tax rate of 40 percent, what income tax journal entry is recorded if the companies prepare a consolidated tax return? j. With a tax rate of 40 percent, what income tax journal entry is recorded if these two companies prepare separate tax returns? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show View transaction list X: 1 Record the income tax expense. 2 Record the income tax expense for Parson. 3 Record the income tax expense for Syber. Credit