during 2019. b. Prepare the required [I] consolidation journal entries for 2019

Marked out of 15.00 0 4 Not yet answered Question Ask your instructor Flag question Computing the amount of equity income and preparing [I] consolidation journal entries-Equity method Assume that a wholly owned subsidiary sells inventory to the parent company. The parent company, ultimately, sells the inventory to customers outside of the consolidated group. The parent company compiled the following data for the years ending 2018 and 201 9: Subsidiary Intercompany % Inventory Remaining at End of Year 2019 2018 Net Income $600,000 $500,000 Inventory Gross Sales Profit % $80,000 $60,000 Receivable (Payable) $30,000 $25,000 Assume that inventory not remaining at the end of the year was sold outside of the consolidated group during the year. Assume the parent company uses the equity method to account for its subsidiary. The subsidiary paid $450,000 in dividends during 2019. a. How much Income (loss) from subsidiary should the parent report in its pre-consolidation income statement the year ending 2019 assuming that it uses the equity method of accounting for its Equity Investment? b. Prepare the required [l] consolidation journal entries for 2019. Consolidation Worksheet Description [Icogs] [Isales] [Icogs] [Ipay] Debit Credit