advance Financial Reporting

Q. No. 2. YIN Inc. purchased 75% of the voting shares of YANG Inc for $500,000 on July 1, 2017. On that date, YANG Inc.'s Common Shares and Retained Earnings wore valued at $200,000 and $100.000 respectively. Unless otherwise stated, assume that WIN uses the cost method to account for its investment in YANG Inc YANG's fair values approximated its carrying values with the following exception: YANG's bonds payable had a fair value which was $50,000 higher than their carrying value. The bonds payable mature on July 1, 2027. Both companies use straight line amortization exclusively The Financial Statements of both companies for the Year ended June 30, 2020 are shown below: Income Statements YIN Inc. YANG Inc. Sales $500.000 $400,000 Other Revonues $100 000 $60.000 Less: Expenses Cost of Goods Sold $400 000 $320,000 Deprociation Expense $20.000 $10,00C Other Expenses $60.000 $30.000 Income Tax Expense $48,000 $40,000 Net Income $72,000 $60,000 YIN Inc. YANG Inc. Retained Earnings Statements Balance, July 1. 2019 $200,000 $240.000 Net Income $72,000 $60.000 Less: Dividends ($22,000) ($30,000) Retained Earnings, June 30, 2020 $250,000 $270,000 Balance Shoots YIN Inc. YANG Inc. Cash $150,000 $120,000 Accounts Receivable $350,000 $160.000 Inventory $200,000 $180,000 Investment in YANG Inc. $500,000 Land $40,000 Equipment (net) $360,000 $240,000 Total Assets $1,600,000 $700,000 Current Liabilities $600,000 $130.000 Bonds Payablo $250,000 $100,000 Common Shares $500,000 $200,000 Retained Eamings $250,000 $270,000 Total Liabilities and Equity $1,600,000 $700,000 Other Information: During August of 2018, YIN sold $60,000 worth of Inventory to YANG, 80% of which was sold to outsiders during the year. During October of 2019, YIN sold inventory to YANG for $90,000 of which two-thirds of this inventory was resold by YANG to outside parties later that year. During September of 2018, YANG sold $90,000 worth of inventory to YIN, 50% of which was sold to outsiders during the year. During April of 2020, Yang sold inventory to YIN for $120,000, 80% of this inventory was resold by YANG to outside parties in May During May of 2020, YANG sold a plot of Land to YIN for $40,000. The land was recorded at cost of $24,000 on YANG's books prior to the sale. YIN has not yet sold the land. All intercompany sales as well as sales to outsiders are priced 50% above cost. The effective tax rate for both companies is 40% Prepare YIN's Consolidated Income Statement for the Year ended June 30, 2020. Show the allocation of the consolidated net income between the controlling and non- controlling interests