D) $6,250 29) Which of the folleorwing are examples of eliminasted in preparing consolidated Dnaial staents 1. Security holdings II. Interest and dividends balances a t 111. Sales and purchases C) I, I1, 111 D) 11 ya Inc, owns 85 percent of Seashore Inc. During, 20x8, Playe sold goods wth 25 percent pront to eashore. Seashore sold all of these goods in 20X8. How should 20x8 comolidated income statement items be adjusted? A) No adjustment is necessary B) Sales and cost of goods sold should be reduced by 85 percent of the intercompany sales ) Net income should be reduced by 85 percent of the gross profit on intercompany sales 1D) Sales and cost of goods sold should be reduced by the intercompany i sales 31) Pillar Company owns 70 percent of Salt Company's outstanding common stock. On December 31, 20x8, Salt sold equipment to Pillar at a price in excess of Salt's carrying amount but less than its original cost. On a consolidated balance sheet at December 31,20x8, the carrying amount of the equipment should be reported at: A) Pillar's original cost. B) Salt's original cost. C) Pillar's original cost less Salt's recorded gain. D) Pillar's original cost less 70 percent of Salt's recorded gain. 32) A parent and its 80 percent-owned subsidiary have made several intercompany sales of noncurrent assets during the past two years. The amount of income assigned to the noncontrolling interest for the second year should include the noncontrolling interest's share of gains: A) unrealized in the second year from upstream sales made in the second year. B) realized in the second year from downstream sales made in both years. C) realized in the second year from upstream sales made in both years. D) both realized and unrealized from upstream sales made in the second year. Corporation purchased the land from a nonaffiliate for $160,000. It sold the land to S2 Company for $145,000 on October 19, 20X8, and S2 sold the land to S1 for $197,000 on November 27, 20X8.Parent has control of the following companies: Parent Corporation purchased land from S1 Corporation for $220,000 on December 26,20X8. This purchase followed a series of transactions between P-controlled subsidiaries. On February 15, 20X8, 3