A- Presented below are several figures reported for Plate Corporation and Saucer Industries as of December 31, 2014. Plate has owned 70% of Saucer for the past five years, and at the time of purchase, the book value of Saucer's assets and liabilities equaled the fair value. The cost of the 70% investment was equal to 70% of the book value of Saucer's net assets. At the time of purchase, the fair values and book values of Saucer's assets and liabilities were equal.

Plate Saucer

Inventory $120,000 $60,000

Sales 200,000 140,000

Cost of Goods Sold 130,000 80,000

Expenses 40,000 30,000

In 2013, Saucer sold inventory to Plate which had cost $40,000 for $60,000. 25% of this inventory remained on hand at December 31, 2013, but was sold in 2014. In 2014, Saucer sold inventory to Plate which had cost $30,000 for $45,000. 40% of this inventory remained unsold at December 31, 2014.

(30 Marks)

Required:

1- Calculate the following:

1. parents share of subsidiary net income in 2014
2. non-controlling interest share of subsidiary net income in 2014 (6 marks)

2- Prepare the required elimination entries in 2014. (Parent entries are not required) (16.5 marks)

3- Prepare the working paper for consolidated Income Statement for 2014 (5.5 marks)

4- Calculate the consolidated Inventory at December 31, 2014.