massachusetts

On January 1,202, Platte Company purchased 90 percent of the common stock of River Company. During 20x2, River sold inventory to Platte for $1,000,000. The cont of the inventory to River was $800,000. By the end of 202,20% of the inventory had not been resold by Platte; that inventory was resold to unrelated parties during 203. Both companies use perpetual inventory systems. The results of operations for the year 202 for the two companies are as follows: (a.) Give the entry needed in a three-part consolidation workpaper prepared at the Required: end of 202 to eliminate the effects of the intercompany inventory transfer. (b.) Compute 202 consolidated net income. (c.) Compute the amount of income assigned to the noncontrolling interest in (d). Compute the amount of income assigned to the controlling interest in 202. 202. (a.) Elimination entry for intercompany inventory transfer, 20x2: Answers: (b.) Consolidated net income, 202 : (c.) Income to noncontrolling interest, 20x2: (d) Income to controlling interest, 202