A. Below are the income statement information for 2015 of Orange and its 75 % owned subsidiary "Gold . Sales Cost of goods sold Gross profit Operating expense Net income Parent 6,000,000 3,000,000 3,000,000 1,500,000 1,500,000 Subsidiary 3, 60 2,400,000 1,200,000 480,000 720,000 During 2015 , Parent sold to its subsidiary inventory for $ 1,200,000 with a gross profit $300,000 . The remaining inventory on the hand of subsidiary is 45 %. Required Compute the unrealized profit t - ending Compute profit for 2015 for the JAN 2017 Non-controlling interest o Parent profit (5 marks , 2.5 each) Prepare the consolidated income statement for 2015 , show the elimination entries . (30 marks : each entry 5 marks and income statement 10 marks )

Part A Question 1 (40 marks) A. Below are the income statement information for 2015 of Orange and its 75% owned subsidiary Gold. Sales Cost of goods sold Gross profit Operating expense Net income Parent 6,000,000 3,000,000 3,000,000 1,500,000 1,500,000 Subsidiary 3,600,000 2,400,000 1,200,000 480,000 720,000 During 2015, Parent sold to its subsidiary inventory for $ 1,200,000 with a gross profit $300,000. The remaining inventory on the hand of subsidiary is 45%. Required 0 5 JAN 2017 Compute the unrealized profit - ending Compute profit for 2015 for the o Non-controlling interest o Parent profit Head Quarter (5 marks, 2.5 each) Prepare the consolidated income statement for 2015, show the elimination entries. (30 marks : each entry 5 marks and income statement 10 marks)