ACCY 410 Final Exam - Review Page 2 Upstream: During 2004, Sigur sold merchandise to Pavement for $60,000, which included profit of $20,000. At December 31, 2004, half of this merchandise remained in Pavement's inventory. Downstream: During 2004, Pavement sold merchandise to Sigur for $50,000. Sigur sold all of these goods to non- affiliates during 2004. At December 31, 2004, Sigur still owed Pavement payment for half of the intercompany purchases that occurred during the year 2004. Current Accounting Information: A consolidation worksheet for the year ended December 31, 2004 is presented on the next page. The requirements for this problem start on the page after the worksheet. Please note that this worksheet is only presented to you as a source of current financial information and (in some perverse way) as a source of comfort; you are not required to complete the worksheet! Pavement uses the Cost Method to account for its investment in Sigur and the Equity Method to account for its investment in Ros