answer to these questions

16. On June 30, year 1. Purl Corp, issued 150,00 received all of Scott Corp's common stock. The fall $0.year 1. Purl Corp. issued 150,000 shares of its S20 par common stock for which it the book value of Scott Corp's net assets. Both corpo Scott Corp.'s common stock. The fair value of the common stock issued is equal to Made of Scott Corp.'s net assets. Both corporations continued to operate as separate businesses, maintaining accounting records separate company operations and dividends paid were aining accounting records with years ending December 31. Net income from Purl Scott Net income for six months ended - Jun 30 year 1 $750,000 $225,000 Net income for six months ended Dec 31, yearl 825,000 375,000 Dividends paid - March 25, yearl 950.000 Dividends paid - November 15, year 1 300,000 On December 31, year 1, Scott held in its inventory merchandise acquired from Puri acquired from Purl on December 1. year 1, for $150,000, which included a $45.000 markup. In the year 1 consolidated income statement, net income should be reported at a. $1,650,000 b. $1,905,000 c. $1,950,000 d. $2,130,000 17. Clark Co. had the following transactions with affiliated parties during year 1: Sales of $60,000 to Dean, Inc., with $20,000 gross profit. Dean had $15,000 of this inventory on hand at year end. Clark owns a 15% interest in Dean and does not exert significant influence. Purchases of raw materials totaling $240.000 from Kent Corp., a wholly owned subsidiary. Kent's gross profit on the sale was $48,000. Clark had $15,000 of this inventory remaining on December 31, year 1. Before eliminating entries, Clark had consolidated current assets of $320,000. What amount should Clark report in its December 31, year 1 consolidated balance sheet for current assets? a. $320,000 b. $317,000 c. $308,000 d. S303,000 18. Parker Corp. owns 80% of Smith Inc.'s common stock. During year 1, Parker sold inventory costing $100,000 to Smith for $250,000. Smith sold all of the inventory purchased from Parker in year 1. The following information pertains to Smith and Parker's sales for year 1: Parker Smith Sales $1,000,000 $700,000 Cost of sales (400,000) (350,000) Gross profit $ 600,000 350,000 What amount should Parker report as sales in its year I consolidated income statement? a. S1,700,000 b. $1,450,000 c. $500,000 d. $1,600,000 e. S1,560,000 19. Selected information from the separate and consolidated balance sheets of Pare, Inc. and its subsidiary, Shel Co., as of December 31. year 1, and is as follows: lance sheets and income statements er 31, year 1, and for the year then ended Balance sheet accounts Pare Shel Consolidated Accounts receivable Inventory $ 52,000 $ 38,000 $78,000 60,000 50,000 104.000 Income statement accounts/amounts Revenues $400,000 $280,000 $616,000 Cost of goods sold 300,000 220,000 462,000 Gross Profit $100,000 $60,000 $154.000 During year 1, Pare sold goods to Shel at the same markup on cost that Pare uses for all sales. In Pare's consolidating worksheet, what amount of unrealized intercompany profit was eliminated? a. $6,000 b. S12,000 c. S58.000 d. $64,000 20. During year 1. Pard Corp. sold goods to its 80%, owned subsidiary, Seed Corp. At December 31, year 1, one-half of these goods were included in Seed's ending inventory. Reported year selling expenses were $1,100,000 and $400,000 for Pard and Seed, respectively. Pard's selling expenses included $50,000 in freight-out costs for goods sold to Seed. What amount of selling expenses should be reported in Pard's year I consolidated income statement? a. S1,500,000 b. $1,480,000 c. $1,475,000 d. $1,450,000 21. Sun, Inc. is a wholly owned subsidiary of Patton, Inc. On June 1. year 1, Patton declared and paid a $1 per share cash dividend to stockholders of record on May 15 year 1. On May 1 year 1. Sun bought 10,000 shares of Patton's common stock for $700,000 on the open market, when the book value per share was $30. What amount of gain should Patton report from this transaction in its consolidated income statement for the year ended December 31, year 1? a. SO b. $390,000 c. $400.000 d. $410,000 22. Perez, Inc. owns 80% of Senior, Inc. During year I, Perez sold goods with a 40% gross profit to Senior. Senior sold none of these goods in year 1. For year 1 consolidated financial statements, how should the summation of Perez and Senior income statement items be adjusted? a. Sales and cost of goods sold should be reduced by the intercompany sales. b. Sales and cost of goods sold should be reduced by 80% of the intercompany sales c. Net income should be reduced by 80% of the gross profit on intercompany sales. d. No adjustment is necessary. e. none of these