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Elimination of intercompany profits for variable interest entities Vies) and voting interest entities Assume that on January 1, 2015 Reporting Company acquires a percent interest

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Elimination of intercompany profits for variable interest entities Vies) and voting interest entities Assume that on January 1, 2015 Reporting Company acquires a percent interest in a Legal Entity for $441,000 cash. The fair value of the 65 percent interest not acquired by the Reporting Company is $19.000. The fair value and book walce of the identifiable net sets of the legal entity equals 1.200.000 The Reporting Company has a night to 35 percent of the reported income Bons of the legal Entity. The entity determined to be and the Reporting Company is determined to be primary beneficiary for the year onded December 31, 2018, the leporting Company and the Vit reported the following pre-consolidation income statements assuming that the reporting Company applies the equity method Reporting Company Coro SDO 20.000 Opet Assume that the legal Entity's income statement for the year ended December , 2015 includes sales to the Reporting Company, and $189,000 of these are still in deporting Companys ending Inventory On intercompany sale, the city as a pro profit equal to 40 percent of sale price. Asume that all of these intercompany items are in the ending inventory of the Reporting Company on December 31, 2018 Show how the guity method income oss from VE computed Note! Use a negative with awer only to indicate equity method loss from VIE 30.0 otthonum ve 1440 b.Compute the amount of consolidated net incon 100.550 Compute the amount of consolidated newcome tribute to the rencontrolling interest X b. Compute the amount of consolidated net income $ 300.510 c Compute the amount of consolidated net income attributable to the noncontrolling interests o d. Compute the amount of consolidated net income attributable to the controlling interesso e. How would your answers to ens (b) through (d) change if the legal Entity is a voting interest entity X Consolated net income Consolidated net income tabi to controlling interest Corsolidated net income attributable to controlling interest

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