Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bunker Corporation owns 80 percent of Harrison Company's stock. At the end of 20X8, Bunker and Harrison reported the following partial operating results and inventory
Bunker Corporation owns 80 percent of Harrison Company's stock. At the end of 20X8, Bunker and Harrison reported the following partial operating results and inventory balances Bunker Harrison Corporation Company $ 693,000 $537,000 Total sales Sales to Harrison Company Sales to Bunker Corporation Net income Operating income (excluding investment income from Harrison) Inventory on hand, December 31, 20X8, purchased from 144,200 244,200 31,000 81,000 Harrison Company Bunker Corporation 48,840 43,260 Bunker regularly prices its products at cost plus a 40 percent markup for profit. Harrison prices its sales at cost plus a 20 percent markup. The total sales reported by Bunker and Harrison include both intercompany sales and sales to nonaffiliates Required: a. What amount of sales will be reported in the consolidated income statement for 20X8? mount of sales $ 841,600 b. What amount of cost of goods sold will be reported in the 20X8 consolidated income statement? (Do not round intermediate calculations.) CR mount of cost of goods sold 636,000 c. What amount of consolidated net income and income to controlling interest will be reported in the 20X8 consolidated income statement? Consolidated net income Income to controlling interest d. What balance will be reported for inventory in the consolidated balance sheet for December 31, 20x8? nventory
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started