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(52 points. Please show your calculations) the bellary, Levant: 2009. Black 1. On January 1, 2009. Black Cormoration sold equipment to its 80-percent owice subsidiary,
(52 points. Please show your calculations) the bellary, Levant: 2009. Black 1. On January 1, 2009. Black Cormoration sold equipment to its 80-percent owice subsidiary, Levant Company for $420.000 The equipment originally was purchased the beginning of 2006 for $960.000 Levant continued to depreciate the equipment, with an original 5 year useful life, on a straight-line basis over its remaining 2-year late. The equipment's residual value is considered negligible. On July 7, 2009. Levant sold idle land to its parent for $240.000. The land's carrying amount on Levant's books was $180.000. During 2010, Black sold the land to an unaffiliated buyer at a $70,000 gain. Black reported income from its separate operations for 2009 and 2010 of $1,400,000 and $1.720,000, respectively. Levant reported net income for 2009 and 2010 of $1,220,000 and $1,140,000, respectively Required: Compute the following items and show all your work. a. Unrealized gain immediately after the intercompany equipment sale. 960,000.215= 384000 b. Partial realization on the gain of equipment at the end of 2009 420,000-384000 = 36000 c. Unrealized gain from the intercompany land sale in 2009. 240,000 - 180,000 - 60000 d. Consolidated Net Income in 2009 =1400000 +1220000 - 36000-60000 +(36000/2) =2542000 e. Income assigned to Non-Controlling Interest in 2009 (1220000 -60000) to its 70-percent-owned e purchased at f. Income assigned to Controlling Interest in 2009 = 1400000 - 36000+ (36000/2) + (1220000-60000):80 = 2310000 g. Consolidated Net Income in 2010. h. Income to Non-Controlling Interest in 2010 i. Income to Controlling Interest in 2010
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