Completion Status: Parent Company acquired 80% of the voting stock of Subsidiary Company on January 1, 2020, for $306,000 cash. On the acquisition date Subsidiary fair value of net assets is $382,500 and the fair value of the 20% noncontrolling interest is $76,500. The following balances of selected accounts are made available on December 31, 2021: Account Sales Cost of Goods Sold Operating Expenses Inventory Parent $440,000 205,000 87,000 185,000 Subsidiary $300,000 158,500 64,500 72,000 Assume that Subsidiary sells inventory to Parent at a markup equal 60% of cost. Intra-entity transfers are $37,000 in 2020 and $52,000 in 2021. Of this inventory $22,500 are on hand at the end of 2020 and $29,500 are on hand at end of 2021. 1-Calculate the balances for the following accounts that would appear in the consolidated financial statements for 2021: (6 Marks) a-Cost of Goods Sold. b-Inventory. c-Net Income attributable to noncontrolling interest. 2-Prepare 2021 consolidated entries required by the intra-entity inventory transfer. (LEAVE AN EMPTY LINE BETWEEN JOURNAL ENTRIES). (3 Marks) downstream Respondus LockDown Browser x Remaining Time: 1 hour, 46 minutes, 23 seconds. Question Completion Status: JOURNAL ENTRIES). (3 Marks) 3-Assume that the intra-entity transfer is downstream and that Parent uses the equity method. (2 Marks) a-Compute the net income attributable to noncontrolling interest. b-Explain how would Consolidation entry *G differ? (NO ENTRY IS REQUIRED). For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 14px A L I 0 WORDS POWERED BY TINY