Question
GV company purchase 70% ownership of DL company on January 1, 2016 at underlying book value. While each company had its own sales forces and
GV company purchase 70% ownership of DL company on January 1, 2016 at underlying book value. While each company had its own sales forces and independent product lines, there were substantial intercorporate sales of inventory each period. The following intercorporate sales occurred during 2017 and 2018:
Year | Seller | Cost of product sold | Buyer | Sales price | Unsold at end of year | Year sold to outsiders |
2017 | GV Co. | 448,000 | DL Co. | 640,000 | 140,000 | 2018 |
2018 | DL Co. | 312,000 | GV Co. | 480,000 | 77,000 | 2019 |
2018 | GV Co. | 350,000 | DL Co. | 437,500 | 63,000 | 2019 |
The following data summarized the results of their financial operations for the year ended December 31, 2018:
GV Company DL Company Sales 3,850,000 1,680,000 Gross profit 1,904,000 504,000 Operating expenses 770,000 280,000 Ending inventories 336,000 280,000 Dividend received from affiliate 126,000 - Dividend received from nonaffiliate - 70,000
1. What are the consolidated sales and consolidated cost of goods sold at the end of 2018?
2. What are the Consolidated net income attributable to parent shareholders equity and noncontrolling interest in net income at the end of year 2018?
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