On January 1, 2000 Tiger Company acquired all of the stock of Rebel Company at book value Tiger Company accounts for its investment of Rebel Company using the initial value method and Rebel pays no dividends.

On December 1, 2018 Tiger Company sold merchandise (inventory) to Rebel Company on credit Tiger had purchased the merchandise for $400,000 and sold it to Rebel for $800,000.

At the end of the year, Rebel had not sold any of the Tiger merchandise and did not pay off their receivable.

In 2019 Rebel sold 75% of the merchandise acquired from Tiger to Lion Company for $1,000,000.

In 2020 Rebel sold the remaining merchandise for $400,000.

REQUIRED:

A) Make the journal entry for Tiger when it sells the merchandise to Rebel Tiger uses Perpetual Inventory Method.

B) Make the journal entry Rebel makes when it buys the merchandise from Tiger Rebel also uses Perpetual Inventory.

C) Make the necessary worksheet entries in 2018.

D) In 2018 Tiger reported unconsolidated income of $400,000 and Rebel reported income of $80,000 what is consolidated income?

E) Make the necessary worksheet entry in 2019.

F) In 2019 Tiger reported unconsolidated income of $400,000 and Rebel reported income of $80,000 what is consolidated income?

G) Make the necessary worksheet entry in 2020.

H) In 2020 Tiger reported unconsolidated income of $400,000 and Rebel reported income of $80,000, what is consolidated income?