Flag On January 1, Year 1, Entity A acquired 60% of Entity B's voting interests for $100,000. The carrying amount of Entity B's assets and liabilities on that date equals their fair values. The noncontrolling interest (NCI) is measured at its fair value of $50,000. Entity A and Entity B use the same accounting principles, and no consolidating adjustments need to be made for intraentity transactions, etc., except as described below. The trial balances on December 31, Year 1, of Entity A and Entity B before consolidation are presented below. Account Entity B Entity A Cash $ 124,000 $ 69,000 Trade receivables 36,000 29,000 Inventories 63,000 34,000 Current investments -- 24,000 PPE (net) 106,000 50,000 Investment in Entity B -- 100,000 Trade payables (29,000) (52,000) Liability for employee benefits (43,000) (62,000) Noncurrent loans payable (90,000) -- Common stock (33,000) (40,000) Additional paid-in capital (37,000) (21,000) Retained earnings January 1, Year 1 (55,000) (78,000) Net sales (150,000) (120,000) Cost of sales 50,000 61,000 General and administrative expenses 8,000 17,000 Interest expense 4,000 6,000 Dividend income received from Entity B -- (24,000) Income tax expense 6,000 7,000 Dividends declared and paid 40,000 -- Additional information: In its separate financial statements, Entity A accounts for its investment in the subsidiary (Entity B) according to the cost model. Thus, dividends from the subsidiary are recognized as income. During Year 1, Entity B distributed a cash dividend of $40,000. On December 31, Year 1, Entity A sold on credit an inventory item with a cost of $20,000 to Entity B for $28,000. This item is in Entity B's inventory at year end. Note: To simplify the simulation, items of other comprehensive income are not included. Complete Entity A's year-end consolidated income statement. Enter the appropriate amounts in the designated cells below. Enter all amounts as positive values. If no entry is necessary, enter a zero (0). 1. Net sales 2. Cost of sales 3. Dividend income 4. Net income 5. Net income attributable to the NCI 6. Net income attributable to the parent Expert Answer An expert answer will be posted here Practice with similar questions Q: On January 1, Year 1, Entity A acquired 60% of Entity B's voting interests for $100,000. The carrying amount of Entity B's assets and liabilities on that date equals their fair values. The noncontrolling interest (NCI) is measured at its fair value of $50,000. Entity A and Entity B use the same accounting principles, and no consolidating adjustments need to be made for intraentity... A: See answer Q: On January 1, Year 1, Entity A acquired 70% of Entity B's voting interests for $87,500. The carrying amount of Entity assets and liabilities on that date equals their fair values. The noncontrolling interest (NCI) is measured at its fair valu of $37,500. Entity A and Entity B use the same accounting principles, and no consolidating adjustments need to bem for intraentity... A: See answer Show more Up next for you in Accounting 1) A company purchased a building at a cost of $470,000 on January 1. The building is estimated to have a useful life of 10 years and a $59,000 salvage value. The company uses the straight-line method of See answer 16. On June 30, year 1, Purl Corp. issued 150.000 shares of its $20 par common stock for whic Solution Image See answer See more questions for subjects you study Questions viewed by other students Q: On January 1, Year 1, Entity A acquired 60% of Entity B's voting interests for $100,000. The carrying amount of Entity's assets and liabilities on that date equals their fair values. The noncontrolling interest (NCI) is measured at its fair value of $50,000. Entity A and Entity B use the same accounting principles, and no consolidating adjustments need to be made for intraentity... A: See answer Q: Entity A and Entity B are separate entities, and both use a calendar-year accounting period. Using the information provided for each entity in the table below, enter the appropriate amounts in the designated cells below. Enter all amounts as positive values. If no entry is necessary, enter a zero (0) or leave the cell blank. Account Entity A Entity B Revenues $10... A: See answer Show more Post a question Answers from our experts for your tough homework questions

Sales

Cost of Sales

Dividend Income

Net Income

Net Income attributable to NCI

Net income attributable to parent