Hello John, I have a new assignment, I only get one chance

Problem 5-16 [LO2, LO3, LO5] Following are several figures reported for Preston and Sanchez as of December 31, 2013: Inventory Sales Investment income Cost of goods sold Operating expenses $ Preston Sanchez 450,000 $ 250,000 900,000 700,000 not given 450,000 350,000 205,000 275,000 Preston acquired 90 percent of Sanchez in January 2012. In allocating the newly acquired subsidiary's fair value at the acquisition date, Preston noted that Sanchez having developed a customer list worth $68,000 unrecorded on its accounting records and having a five-year remaining life. Any remaining excess fair value over Sanchez's book value was attributed to goodwill. During 2013, Sanchez sells inventory costing $125,000 to Preston for $170,000. Of this amount, 15 percent remains unsold in Preston's warehouse at year-end. For Preston's consolidated reports, determine the following amounts to be reported for the current year. Amounts Inventory Sales Cost of Goods Sold Operating Expenses Noncontrolling Interest in the Subsidiary's Net Income $ $ $ $ $ Problem 5-18 [LO1, LO3, LO4, LO5, LO6, LO7] Placid Lake Corporation acquired 90 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2012, when Scenic had a net book value of $610,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $4,000 per year. Placid Lake's 2013 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $510,000. Scenic reported net income of $320,000. Placid Lake distributed $200,000 in dividends during this period; Scenic paid $61,000. At the end of 2013, selected figures from the two companies' balance sheets were as follows: Placid Lake Corporation Inventory $ 350,00 0 Scenic, Inc. $ 111,00 0 Land 810,00 0 410,00 0 Equipment (net) 610,00 0 510,00 0 During 2012, intra-entity sales of $180,000 (original cost of $84,000) were made. Only 30 percent of this inventory was still held within the consolidated entity at the end of 2012. In 2013, $300,000 in intra-entity sales were made with an original cost of $80,000. Of this merchandise, 40 percent had not been resold to outside parties by the end of the year. Each of the following questions should be considered as an independent situation for the year 2013. a. What is consolidated net income for Placid Lake and its subsidiary? Consolidated net income $ b. If the intra-entity sales were upstream, how would consolidated net income be allocated to the controlling and noncontrolling interest? If upstream Consolidated Net Income Controlling interest $ Noncontrolling interest $ c. If the intra-entity sales were downstream, how would consolidated net income be allocated to the controlling and noncontrolling interest? If downstream Consolidated Net Income Controlling interest $ Noncontrolling interest $ d. What is the consolidated balance in the ending Inventory account? Consolidated inventory $ e. Assume that no intra-entity inventory sales occurred between Placid Lake and Scenic. Instead, in 2012, Scenic sold land costing $51,000 to Placid Lake for $92,000 . On the 2013 consolidated balance sheet, what value should be reported for land? Consolidated land balance $ f-1. Assume that no intra-entity inventory or land sales occurred between Placid Lake and Scenic. Instead, on January 1, 2012, Scenic sold equipment (that originally cost $200,000 but had a $81,000 book value on that date) to Placid Lake for $112,000 . At the time of sale, the equipment had a remaining useful life of five years. What worksheet entries are made for a December 31, 2013, consolidation of these two companies to eliminate the impact of the intra-entity transfer? Entry *ENTRY TA General Journal Debit Credit ENTRY ED f-2. For 2013, what is the noncontrolling interest's share of Scenic's net income? Noncontrolling interest's share of Scenic's net income $ Problem 5-19 [LO2, LO3, LO4, LO5] On January 1, 2012, Doone Corporation acquired 70 percent of the outstanding voting stock of Rockne Company for $504,000 consideration. At the acquisition date, the fair value of the 30 percent noncontrolling interest was $216,000 and Rockne's assets and liabilities had a collective net fair value of $720,000. Doone uses the equity method in its internal records to account for its investment in Rockne. Rockne reports net income of $250,000 in 2013. Since being acquired, Rockne has regularly supplied inventory to Doone at 25 percent more than cost. Sales to Doone amounted to $310,000 in 2012 and $410,000 in 2013. Approximately 40 percent of the inventory purchased during any one year is not used until the following year. a. What is the noncontrolling interest's share of Rockne's 2013 income? Noncontrolling interest's share b. $ Prepare Doone's 2013 consolidation entries required by the intra-entity inventory transfers. Event Entry *G Entry Tl General Journal Debit Credit Entry G Problem 5-20 [LO3, LO4, LO5, LO7] Penguin Corporation acquired 80 percent of the outstanding voting stock of Snow Company on January 1, 2012, for $416,000 in cash and other consideration. At the acquisition date, Penguin assessed Snow's identifiable assets and liabilities at a collective net fair value of $555,000 and the fair value of the 20 percent noncontrolling interest was $104,000. No excess fair value over book value amortization accompanied the acquisition. The following selected account balances are from the individual financial records of these two companies as of December 31, 2013: Penguin Sales $ 670,000 Snow $ 390,00 0 Cost of goods sold 305,000 212,00 0 Operating expenses 153,000 108,00 0 770,000 210,00 0 Inventory 349,000 113,00 0 Buildings (net) 361,000 160,00 0 Not given 0 Retained earnings, 1/1/13 Investment income Each of the following problems is an independent situation: a. Assume that Penguin sells Snow inventory at a markup equal to 60 percent of cost. Intra-entity transfers were $93,000 in 2012 and $113,000 in 2013. Of this inventory, Snow retained and then sold $31,000 of the 2012 transfers in 2013 On consolidated following accounts: and held $45,000 of the 2013 transfers until 2014. financial statements for 2013, determine the balances that would appear for the Cost of goods sold $ Inventory $ Noncontrolling interest in subsidiary's net income $ b. Assume that Snow sells inventory to Penguin at a markup equal to 60 percent of cost. Intra-entity transfers were $53,000 in 2012 and $83,000 in 2013. Of this inventory, $24,000 of the 2012 transfers were retained and then sold by Penguin in 2013, whereas $38,000 of the 2013 transfers were held until 2014. On consolidated financial statements for 2013, determine the balances that would appear for the following accounts: Cost of goods sold $ Inventory $ Noncontrolling interest in subsidiary's net income $ c. Penguin sells Snow a building on January 1, 2012, for $86,000, although its book value was only $53,000 on this date. The building had a five-year remaining life and was to be depreciated using the straight-line method with no salvage value. Determine the balances that would appear on consolidated financial statements for 2013 for the following accounts: Consolidated Buildings (net) $ Consolidated expenses $ Noncontrolling interest in subsidiary's net income $ Problem 5-26 [LO3, LO4, LO5, LO7] On January 1, 2013, Sledge had common stock of $140,000 and retained earnings of $280,000. During that year, Sledge reported sales of $150,000, cost of goods sold of $80,000, and operating expenses of $42,000. On January 1, 2011, Percy, Inc., acquired 80 percent of Sledge's outstanding voting stock. At that date, $62,000 of the acquisition-date fair value was assigned to unrecorded contracts (with a 20-year life) and $22,000 to an undervalued building (with a 10-year life). In 2012, Sledge sold inventory costing $11,050 to Percy for $17,000. Of this merchandise, Percy continued to hold $7,000 at year-end. During 2013, Sledge transferred inventory costing $12,100 to Percy for $22,000. Percy still held half of these items at year-end. On January 1, 2012, Percy sold equipment to Sledge for $13,000. This asset originally cost $18,000 but had a January 1, 2012, book value of $9,400. At the time of transfer, the equipment's remaining life was estimated to be five years. Percy has properly applied the equity method to the investment in Sledge. a. Prepare worksheet entries to Event Entry *G Entry *TA Entry S consolidate these two companies as of December 31, 2013. General Journal Debit Credit Entry A Entry I Entry E Entry TI Entry G Entry ED b. Compute the noncontrolling interest in the subsidiary's net income for 2013. Noncontrolling interest in subsidiary's net income $