On January 1, 2000 Froto Company purchased 100% of the voting stock of Bilbo Company at book value when the book value of Bilbo's assets equalled their fair market value Froto accounts for its investment in Bilbo using the initial value (cost method) and Bilbo doesn't pay any dividends On October 1st 2018, Froto Company sold inventory to Bilbo Company for $1,000,000. Froto had purchased the merchandise for $700,000. Bilbo paid cash for the merchandise and it hadn't sold any of this inventory in 2018 In 2019 Bilbo sold 80% of the merchandise acquired from Froto for $700,000. In 2020 Bilbo sold the rest of the merchandise acquired from Froto for $500,000 ADDITIONAL INFORMATION FOR 2018, 2019 AND 2020 ARE AS FOLLOWS: FROTO BILBO UNCONSOLIDATED NET INCOME 2018 5,000,000 200,000 UNCONSOLIDATED NET INCOME 2019 5,200,000 210,000 UNCONSOLIDATED NET INCOME 2020 5,500,000 225,000 INVENTORY 12/31/18 BALANCE SHEET INVENTORY 12/31/19 BALANCE SHEET INVENTORY 12/31/20 BALANCE SHEET 3,000,000 2,800,000 2,500,000 2,000,000 1,600,000 1,400,000 REQUIRED: FOR 2018 A) MAKE THE JOURNAL ENTRY FROTO MAKES WHEN IT SELLS THE MERCHANDISE TO BILBO (FROTO USES PERPETUAL INVENTORY) B) MAKE THE JOURNAL ENTRY BILBO MAKES WHEN IT BUYS THE MERCHANDISE FROM FROTO (BILBO USES PERIODIC INVENTORY) C) MAKE ANY NECESSARY WORKSHEET ENTRIES CONNECTED WITH THE INVENTORY TRANSACTION D) DETERMINE 2018 CONSOLIDATED INCOME E) DETERMINE 2018 CONSOLIDATED INVENTORY FOR 2019 A) MAKE THE JOURNAL ENTRY BILBO MAKES WHEN IT SELLS THE FROTO MERCHANDISE B) MAKE ANY NECESSARY WORKSHEET ENTRIES CONNECTED WITH THE INVENTORY TRANSACTION C) DETERMINE 2019 CONSOLIDATED INCOME D) DETERMINE 2019 CONSOLIDATED INVENTORY FOR 2020 A) MAKE ANY NECESSARY WORKSHEET ENTRIES CONNECTED WITH THE INVENTORY TRANSACTION B) DETERMINE 2020 CONSOLIDATED INCOME C) DETERMINE 2020 CONSOLIDATED INVENTORY