1.Pollman Shells

Sales$1,500,000 $500,000

Cost of Goods Sold750,000 200,000Operating Expenses550,000. 200,000

Net Income $200,000. $100,000

Inventory 12/31/X1$120,000$60,000

Pollman sold $300,000 of goods to Shells.

Of the goods sold $60,000 were not sold on 12/31/X1.

Pollman has a uniform margin on all of its sales.

Shells has a uniform margin on all of its sales.

What amount will be reported as consolidated sales?

What amount will be reported as consolidated inventory ?

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2. Pollman Shells

Sales$1,500,000 $500,000

Cost of Goods Sold750,000 200,000Operating Expenses550,000. 200,000

Net Income $200,000. $100,000

Inventory 12/31/X1$120,000$60,000

Pollman sold $300,000 of goods to Shells.

Of the goods sold $60,000 were not sold on 12/31/X1.

Pollman has a uniform margin on all of its sales.

Shells has a uniform margin on all of its sales.

Assume the beginning inventory contained $30,000 of goods associated with intercompany sales from Pollman to Shells. What amount would be reported as consolidated cost of goods

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3..Pollman. Shells

Sales$1,500,000$500,000

Cost of Goods Sold750,000200,000Operating Expenses550,000. 200,000

Net Income$200,00 $100,000

Inventory 12/31/X1$120,000$60,000Pollman sold $300,000 of goods to Shells.

Of the goods sold $60,000 were not sold on 12/31/X1.

Pollman has a uniform margin on all of its sales.

Shells has a uniform margin on all of its sales.

Pollman owns 90% of Shell.

Assume the beginning inventory contained $30,000 of goods associated with intercompany sales from Pollman to Shells. What would be reported for the controlling interest in consolidated net income?

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4.Kristen Company sold inventory that cost $50,000 to its 90%-owned subsidiary, McKeon Corp., for $75,000 in 20X4. McKeon resold $60,000 of this inventory for $85,000 in 20X4. The amount of unrealized profit at the end of 20X4 is _______.

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5. Park. Sun

Equipment, Net$200,000 $117,500

Notes Receivable250,000

Notes Payable 150,000

Gain on Sale of Equipment

20,000

On the January 2, 20X1 Park sold equipment with a book value of $30,000 to Sun for a $50,000. Sun signed a one-year note promising to pay Park on January 2, 20X2. This is the only note between the two companies. On that date, the equipment had a 4-year useful life.

What gain on the sale of equipment will be reported in the consolidated financial statements?

What amount is reported on the consolidated financial statements forequipment?