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On January 1st 2000, Vadar Company acquired all of the stock of Skywalker Company at book value Skywalker does not pay dividends and Vadar uses
On January 1st 2000, Vadar Company acquired all of the stock of Skywalker Company at book value Skywalker does not pay dividends and Vadar uses the initial value (cost) method for its investment in Skywalker On October 1st, 2020 Vadar sold some inventory to Skywalker for $20000 cash. Vadar purchased the inventory for $14000. As of December 31st, Skywalker had not sold any of the inventory acquired from Vadar By the end of 2021, Skywalker had sold 3/4 of the inventory acquired from Vadar. By the end of 2022, Skywalker sold the remaining 1/4 of the inventory acquired from Vadar In 2020 Vadar reported (unconsolidated) income of $90,000 and Skywalker reported income of $12000 In 2021 Vadar reported (unconsolidated) income of $111,000 and Skywalker reported income of $19000 In 2022 Vadar reported (unconsolidated) income of $135000 and Skywalker reported income of $22000 REQUIRED: A) Make the journal entry Vadar makes when it sells the merchandise to Skywalker (Vadar uses perpetual inventory) B) Make the journal entry Skywalker makes when it buys the merchandise from Vadar (Skywalker uses periodic inventory) C) Make the necessary worksheet entries for 2020 D) Determine consolidated income for 2020 E) Make the necessary worksheet entries for 2021 F) determine consolidated income for 2021 G) make the necessary worksheet entries for 2022 H) determine consolidated income for 2021
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