ditu entity on December 31, 20X1? b. $16,800 c. $24,000 d. $39,000 6-3 E6-5 Multiple-Choice Questions-Consolidated Income Statement Select the correct answer for each of the following questions. Amber Corporation holds 80 percent of the stock of Movie Productions Inc. During 20X4. Amber purchased an inventory of snack bar items for $40,000 and resold $30,000 to Movie Pro- ductions for $48,000. Movie Productions Inc. reported sales of $67,000 in 20X4 and had inventory of $16,000 on December 31, 20X4. The companies held no beginning inventory and had no other transactions in 20X4. 1. What amount of cost of goods sold will be reported in the 20X4 consolidated income statement? a. $20,000 b. $30,000 c. $32,000 d. $52.000 e. $62,000 2. What amount of net income will be reported in the 20X4 consolidated income statement? a. $12.000 b. $18,000 c. $40,000 d. $47.000 e $53,000 MILJ I te le company sale. E6-7 Sale of Inventory to Subsidiary Planet Corporation acquired 90 percent of Saturn Company's voting shares of stock in 20X1. Dur. ing 20X4, Planet purchased 40,000 Playday doghouses for $24 each and sold 25,000 of them to Saturn for $30 each. Saturn sold 18,000 of the doghouses to retail establishments prior to Decem- ber 31, 20X4, for $45 each. Both companies use perpetual inventory systems. Required a. Give all journal entries Planet recorded for the purchase of inventory and resale to Saturn Com pany in 20X4. b. Give the journal entries Saturn recorded for the purchase of inventory and resale to retail est lishments in 20X4. c. Give the worksheet consolidation entry(ies) needed in preparing consolidated financial stan ments for 20X4 to remove the effects of the intercompany sale. LOE