1 On January 1, 2008, Parent Company acquired 90 percent ownership of Subsidiary Corporation, at underlying book value The fair value of the noncontrolling interest at the date of acquisition was equal to 105 of the book value of the Subsidiary Corporation On March 17, 2008, Subsidiary purchased inventory from Parent for $90,000 Subsidiary sold the inventory to an unaffiliated company for $120,000 on November 21, 2008 Parent had produced the inventory sold to Subsidiary for $62,000 The companies had no other transactions during 2008 What amount of cost of goods sold will be reported in the 2008 consolidated income statement A $62,000 B $120,000 C $90,000 D $58,000 2 On January 1, 2008, Parent Company acquired 90 percent ownership of Subsidiary Corporation, at underlying book value The fair value of the noncontrolling interest at the date of acquisition was equal to 105 of the book value of the Subsidiary Corporation On March 17, 2008, Subsidiary purchased inventory from Parent for $90,000 Subsidiary sold the inventory to an unaffiliated company for $120,000 on November 21, 2008 Parent had produced the inventory sold to Subsidiary for $62,000 The companies had no other transactions during 2008 What amount of consolidated net income will be assigned to the controlling shareholders for 2008 A $58,000 B $59,000 C $55,000 D $52,000

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1. On January 1, 2008, Parent Company acquired 90 percent ownership of Subsidiary Corporation, at underlying book value. The fair value of the noncontrolling interest

On January 1, 2008, Parent Company acquired 90 percent ownership of Subsidiary Corporation, at underlying book value. The fair value of the noncontrolling interest at the date of acquisition was equal to 105 of the book value of the Subsidiary Corporation. On March 17, 2008, Subsidiary purchased inventory from Parent for $90,000. Subsidiary sold the inventory to an unaffiliated company for $120,000 on November 21, 2008. Parent had produced the inventory sold to Subsidiary for $62,000. The companies had no other transactions during 2008. What amount of cost of goods sold will be reported in the 2008 consolidated income statement?

A. $62,000
B. $120,000
C. $90,000
D. $58,000

2.On January 1, 2008, Parent Company acquired 90 percent ownership of Subsidiary Corporation, at underlying book value. The fair value of the noncontrolling interest at the date of acquisition was equal to 105 of the book value of the Subsidiary Corporation. On March 17, 2008, Subsidiary purchased inventory from Parent for $90,000. Subsidiary sold the inventory to an unaffiliated company for $120,000 on November 21, 2008. Parent had produced the inventory sold to Subsidiary for $62,000. The companies had no other transactions during 2008. What amount of consolidated net income will be assigned to the controlling shareholders for 2008?