1. Pat acquired 80% of Sam at the fair value of $160 on 1/1/2020. On that date, the book value of Sam = $200. There were zero fair value adjustments to individual assets and labilities and no goodwill from acquisition. Net income of Pat is $300 and net income of Sam is $50 across both 2020 and 2021. Sam pays no dividends. In 2020, Pat sold 2 widgets to Sam. The widgets cost Pat $2.50 each to make. Pat sold the widgets to Sam at $4 each. Sam sold 1 of those 2 widgets to an outsider in 2020 for $10. Sam sold the other widget to an outsider the next year for $10. a.) What does Pat report for Sales, COGS, Net Profit, and Inventory for 2020? What does Sam report for Sales, COGS, Net Profit, and Inventory for 2020? What should be the consolidated totals for these accounts for 2020? b.) What are the consolidation entries that Pat writes down for 2020 regarding this inventory sale? Repeat for a.) and b.) for 2021. c.) What is the overall reported profit across the two years from the sale of both widgets? d.) If Pat sold the widgets for $5 each to Sam, how do the consolidation entries change? How does the answer to c.) change