P 7-28 A Saved 1 Parson Company acquired an 80 percent interest in Syber Company on January 1, 2017. Any portion of Syber's business fair value in excess of its corresponding book value was assigned to trademarks. This intangible asset has subsequently undergone annual amortization based on a 15-year life. Over the past two years, regular intra-entity inventory sales transpired between the two companies. No payment has yet been made on the latest transfer. All dividends are paid in the same period as declared. 10 points The individual financial statements for the two companies as well as consolidated totals for 2018 follow: eBook $ Parson Company (920,000) 560,000 124,000 (92,800) (328,800) Syber Company $ (720,000) 460,000 136,000 0 Consolidated Totals $ (1,496,000) 882,000 264,000 0 Print References $ $ (124,000) $ (350,000) 21,200 Sales Cost of goods sold Operating expenses Income of Syber Separate company net income Consolidated net income Net income attributable to noncontrolling interest Net income attributable to Parson Company Retained earnings, 1/1/18 Net income (above) Dividends declared Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Syber Company Land, buildings, and equipment Trademarks Total assets Liabilities Common stock Additional paid-in capital Noncontrolling interest in Syber Retained earnings (above) Total liabilities and equities $ (629, 600) (328, 800) 61,000 $ (897, 400) $ 418,000 202,000 425,400 404,000 0 $ 1,449,400 $ (330,000) (180,000) ( 42,000) 0 (897, 400) $ (1,449,400) $ (314,000) (124,000) 42,000 $ (396,000) $ 92,000 184,000 0 296,000 0 $ 572,000 $ (105,000 (71,000) 0 0 (396,000) $ (572,000) $ (328, 800) $ (629,600) (328, 800) 61,000 $ (897,400) $ 485,600 370,500 0 700,000 32,500 $ 1,588,600 $ (370,100) (180,000) (42,000) (99, 100) (897,400) $ (1,588,600) P 7-28 Saved 1 10 points a. What method does Parson use to account for its investment in Syber? b. What is the balance of the intra-entity inventory gross profit deferred at the end of the current period? c. What amount was originally allocated to the trademarks? d. What is the amount of the current year intra-entity inventory sales? e. Were the intra-entity inventory sales made upstream or downstream? f. What is the balance of the intra-entity liability at the end of the current year? g. What amount of intra-entity gross profit was deferred from the preceding period and recognized in the current period? h. What was the ending Noncontrolling Interest in Syber Company computed? i. With a tax rate of 40 percent, what income tax journal entry is recorded if the companies prepare a consolidated tax return? j. With a tax rate of 40 percent, what income tax journal entry is recorded if these two companies prepare separate tax returns? eBook Print References Complete this question by entering your answers in the tabs below. Req A to H Req I and ) a. What method does Parson use to account for its investment in Syber? b. What is the balance of the intra-entity inventory gross profit deferred at the end of the current period? c. What amount was originally allocated to the trademarks? d. What is the amount of the current year intra-entity inventory sales? e. Were the intra-entity inventory sales made upstream or downstream? f. What is the balance of the intra-entity liability at the end of the current year? g. What amount of intra-entity gross profit was deferred from the preceding period and recognized in the current period? h. What was the ending Noncontrolling Interest in Syber Company computed? Show less Req A to H. Req I and ] a. What method does Parson use to account for its investment in Syber? b. What is the balance of the intra-entity inventory gross profit deferred at the end of the current period? c. What amount was originally allocated to the trademarks? d. What is the amount of the current year intra-entity inventory sales? e. Were the intra-entity inventory sales made upstream or downstream? f. What is the balance of the intra-entity liability at the end of the current year? g. What amount of intra-entity gross profit was deferred from the preceding period and recognized in the current period? h. What was the ending Noncontrolling Interest in Syber Company computed? ook rint Show less ences a. Method that Parson use to account for its investment Partial equity method b. Balance of the intra-entity inventory gross profit C. Amount allocated to trademarks d. e. Upstream f. Current year intra-entity inventory sales Intra-entity inventory sales made Balance of the intra-entity liability Intra-entity gross profit was deferred from the preceding period Ending noncontrolling interest g. h. Record the income tax expense for Parson. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 Record entry Clear entry View general Journal 1 Reg A to H Req I and ) 10 points i. With a tax rate of 40 percent, what income tax journal entry is recorded if the companies prepare a consolidated tax return? j. With a tax rate of 40 percent, what income tax journal entry is recorded if these two companies prepare separate tax returns? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less eBook View transaction list Print References Journal entry worksheet Record the income tax expense for Syber. Note: Enter debits before credits. Transaction General Journal Debit Credit 3 Record entry Clear entry View general journal