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Condensed income statements for Pon and its 8 0 percent - owned subsidiary, Star, appear below. Intercompany sales are $ 1 , 5 0 0
Condensed income statements for Pon and its percentowned subsidiary, Star, appear below.
Intercompany sales are $ Unconfirmed intercompany profit in Pon's beginning inventory is $ and
unconfirmed intercompany profit in Pon's ending inventory is $ Unconfirmed intercompany profit in Star's
beginning inventory is $ and unconfirmed intercompany profit in Star's ending inventory is $ At the date
of combination four years ago, previously unrecorded identifiable intangibles year life, straightline of $
were recognized. Because the acquisition cost included a control premium, total goodwill recognized at the date of
acquisition is shared with the noncontrolling interest in a : ratio. This year's goodwill impairment loss is $
Required
a Prepare a schedule to compute Pon's equity in net income and the noncontrolling interest in net income.
Use negative signs with answers that reduce net income amounts.
Enter answers using all zeros do not abbreviate to millions or thousands
b Prepare a condensed consolidated income statement for Pon and Star.
Do not use negative signs with any of your answers below.
Enter answers using all zeros do not abbreviate to millions or thousands
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