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80% of B was purchased by A for $600k in year 1. The book value of B is $500k. The excess of cost of book
80% of B was purchased by A for $600k in year 1. The book value of B is $500k. The excess of cost of book value was from goodwill. B's income included sales to A for $40k that cost B $25k. 30% of this inventory is still available as of year 3. Inventory sold for profit of $5k was in A inventory in year 2. Complete the worksheet for year 3. THE IMAGE IS COMPLETE DO NOT TELL ME THE QUESTION IS INCOMPLETE ALL NECESSARY INFO IS PROVIDED.
Consolidated Bal. 11 Consolidation Entries 12 B Dr. . 13 Sales $50,000 $250,000 14 Expenses $30,000 $150,000 15 Income from S. 16 Income $100,000 17 NCI 18 Controlling Interest 19 Retained Earnings Jan 1, 10 $700,000 $190,000 20 Dividends 100,000 0 21 Retained Earnings Dec 31, 10 $290,000 22 Cash $120,000 $30,000 23 Receivables 90,000 70,000 24 Inventory 100,000 100,000 25 Equipment (net) 100,000 350,000 26 Patents 50,000 27 Investment in Costello 796,400 28 Goodwill 29 Land 100,000 100,000 30 Building (net) 120,000 100,000 31 $1,426,400 $800,000 32 Accounts Payable $100,000 $50,000 33 Capital Stock 460,000 34 Non-Controlling Interest 35 Retained Earnings (12/31) 290.000 36 $1,426,400 $800,000 Consolidated Bal. 11 Consolidation Entries 12 B Dr. . 13 Sales $50,000 $250,000 14 Expenses $30,000 $150,000 15 Income from S. 16 Income $100,000 17 NCI 18 Controlling Interest 19 Retained Earnings Jan 1, 10 $700,000 $190,000 20 Dividends 100,000 0 21 Retained Earnings Dec 31, 10 $290,000 22 Cash $120,000 $30,000 23 Receivables 90,000 70,000 24 Inventory 100,000 100,000 25 Equipment (net) 100,000 350,000 26 Patents 50,000 27 Investment in Costello 796,400 28 Goodwill 29 Land 100,000 100,000 30 Building (net) 120,000 100,000 31 $1,426,400 $800,000 32 Accounts Payable $100,000 $50,000 33 Capital Stock 460,000 34 Non-Controlling Interest 35 Retained Earnings (12/31) 290.000 36 $1,426,400 $800,000Step by Step Solution
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