Exercise 6-9 Peat Company owns a 90% interest in Seaton Company. The consolidated income statement drafted by the controller of Peat Company appeared as follows: Peat Company and Subsidiary Consolidated Income Statement for Year Ended December 31, 2015 Sales $14,086,800 Cost of Sales 9,130,000 Operating Expense 1,788,800 10,918,800 Consolidated Income 3,168,000 Less Noncontrolling Interest in Consolidated Income 216,800 Controlling Interest in Consolidated Net Income $2,951,200 During your audit you discover that intercompany sales transactions were not reflected in the controller's draft of the consolidated income statement. Information relating to intercompany sales and unrealized intercompany profit is as follows: Selling Unsold at Price Year End 2014 Sales-Seaton to Peat $1,510,600 $1,797,700 2015 Sales--Peat to Seaton 903,500 1,406,500 2/5 Prepare a corrected consolidated income statement for Peat Company and Seaton Company for the year ended December 31, 2015 Cost 1/3 PEAT COMPANY AND SUBSIDIARY Consolidated Income Statement For the Year Ended December 31, 2015 $ YWY 2015 Sales-Peat to Seaton 903,500 1,406,500 2/5 Prepare a corrected consolidated income statement for Peat Company and Seaton Company for the year ended December 31, 2015. PEAT COMPANY AND SUBSIDIARY Consolidated Income Statement For the Year Ended December 31, 2015 Click if you would like to Show Work for this question: Open Show Work