On January 1 , 2 0 2 4 , Sledge had common stock of $ 2 0 0 , 0 0 0 and retained earnings of $ 3 4 0 , 0 0 0 During that year, Sledge reported sales of $ 2 1 0 , 0 0 0 , cost of goods sold of $ 1 1 0 , 0 0 0 , and operating expenses of $ 4 8 , 0 0 0 On January 1 , 2 0 2 2 , Percy, Incorporated, acquired 8 0 percent of Sledge's outstanding voting stock At that date, $ 6 8 , 0 0 0 of the acquisition date fair value was assigned to unrecorded contracts ( with a 2 0 year life ) and $ 2 8 , 0 0 0 to an undervalued building ( with a 1 0 year remaining life ) In 2 0 2 3 , Sledge sold inventory costing $ 1 3 , 8 0 0 to Percy for $ 2 3 , 0 0 0 Of this merchandise, Percy continued to hold $ 8 , 0 0 0 at year end During 2 0 2 4 , Sledge transferred inventory costing $ 1 6 , 8 0 0 to Percy for $ 2 8 , 0 0 0 Percy still held half of these items at year end On January 1 , 2 0 2 3 , Percy sold equipment to Sledge for $ 1 6 , 0 0 0 This asset originally cost $ 2 4 , 0 0 0 but had a January 1 , 2 0 2 3 , book value of $ 1 0 , 6 0 0 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 Required Prepare worksheet entries to consolidate these two companies as of December 3 1 , 2 0 2 4 Compute the net income attributable to the noncontrolling interest for 2 0 2 4 Cost of Goods Sold Inventory Net Income Attributable to Noncontrolling Interest References b Assume that Seacraft sells inventory to Protrade at a markup equal to 6 0 percent of cost Intra entity transfers were $ 6 3 , 0 0 0 in 2 0 2 3 and $ 9 3 , 0 0 0 in 2 0 2 4 Of this inventory, $ 3 4 , 0 0 0 of the 2 0 2 3 transfers were retained and then sold by Protrade in 2 0 2 4 , whereas $ 4 8 , 0 0 0 of the 2 0 2 4 transfers were held until 2 0 2 5 Determine balances for the following items that would appear on consolidated financial statements for 2 0 2 4 Cost of Goods Sold Inventory Net Income Attributable to Noncontrolling Interest c Protrade sells Seacraft a building on January 1 , 2 0 2 3 , for $ 1 0 6 , 0 0 0 , although its book value was only $ 6 3 , 0 0 0 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 balances for the following items that would appear on consolidated financial statements for 2 0 2 4 Buildings ( net ) Operating Expenses Net Income Attributable to Noncontrolling Interest

Question

On January 1 , 2 0 2 4 , Sledge had common stock of $ 2 0 0 , 0 0 0 and retained earnings of $ 3 4 0 , 0 0 0   During that year, Sledge reported sales of $ 2 1 0 , 0 0 0 , cost of goods sold of $ 1 1 0 , 0 0 0 , and operating expenses of $ 4 8 , 0 0 0   On January 1 , 2 0 2 2 , Percy, Incorporated, acquired 8 0 percent of Sledge's outstanding voting stock  At that date, $ 6 8 , 0 0 0 of the acquisition   date fair value was assigned to unrecorded contracts ( with a 2 0   year life ) and $ 2 8 , 0 0 0 to an undervalued building ( with a 1 0   year remaining life )   In 2 0 2 3 , Sledge sold inventory costing $ 1 3 , 8 0 0 to Percy for $ 2 3 , 0 0 0   Of this merchandise, Percy continued to hold $ 8 , 0 0 0 at year   end  During 2 0 2 4 , Sledge transferred inventory costing $ 1 6 , 8 0 0 to Percy for $ 2 8 , 0 0 0   Percy still held half of these items at year   end  On January 1 , 2 0 2 3 , Percy sold equipment to Sledge for $ 1 6 , 0 0 0   This asset originally cost $ 2 4 , 0 0 0 but had a January 1 , 2 0 2 3 , book value of $ 1 0 , 6 0 0   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  Required  Prepare worksheet entries to consolidate these two companies as of December 3 1 , 2 0 2 4   Compute the net income attributable to the noncontrolling interest for 2 0 2 4   Cost of Goods Sold Inventory Net Income Attributable to Noncontrolling Interest References b   Assume that Seacraft sells inventory to Protrade at a markup equal to 6 0 percent of cost   Intra   entity transfers were $ 6 3 , 0 0 0 in 2 0 2 3 and $ 9 3 , 0 0 0 in 2 0 2 4   Of this inventory, $ 3 4 , 0 0 0 of the 2 0 2 3 transfers were retained and then sold by Protrade in 2 0 2 4 , whereas $ 4 8 , 0 0 0 of the 2 0 2 4 transfers were held until 2 0 2 5   Determine balances for the following items that would appear on consolidated financial statements for 2 0 2 4   Cost of Goods Sold Inventory Net Income Attributable to Noncontrolling Interest c   Protrade sells Seacraft a building on January 1 , 2 0 2 3 , for $ 1 0 6 , 0 0 0 , although its book value was only $ 6 3 , 0 0 0 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 balances for the following items that would appear on consolidated financial statements for 2 0 2 4   Buildings ( net ) Operating Expenses Net Income Attributable to Noncontrolling Interest

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Question

On January 1 , 2 0 2 4 , Sledge had common stock of $ 2 0 0 , 0 0 0 and retained earnings

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