Blue Company purchased 60 percent ownership of Kelly Corporation in 20X1. On May 10, 20X2, Kelly purchased inventory from Blue for $60,000. Kelly sold all of the inventory to an unaffiliated company for $86,000 on November 10, 20X2. Blue produced the inventory sold to Kelly for $47,000. The companies had no other transactions during 20X2.

What amount of sales will be reported in the 20X2 consolidated income statement?

a. $51,600. b. $60,000. c. $86,000. d. $146,000.

What amount of cost of goods sold will be reported in the 20X2 consolidated income statement?

a. $36,000. b. $47,000. c. $60,000. d. $107,000.

What amount of consolidated net income will be assigned to the controlling shareholders for 20X2?

a. $13,000. b. $26,000. c. $28,600. d. $39,000.