p acquired 69% of S

S equity at acquesition consist of 300000 common stock and 100000 retained earning

inventory understated 20000 of which 80% sold in y1 and15% sold in y2

note payable overstated 9000 and 3 years to maturity

note receivable overstated 6000 and 24 months remaining to mature

S net income for year 1 was 60000 and S net income for year 2 was 70000

S dividends in year 1 = 15000 in year 2 the same

sales from P to S year1 of product A 1000 @18 cost to P 14 and S sold to external @22 in y1 600 and 300 y2

sales from S to P year1 of product B 900 @17 cost to S 15 and P sold to external @20 in y1 700 and 150 y2

sales from P to S year2 product C 500 @20 cost to P 17 and S sold 150 units to external @25

sales from S to P year2 product D 400 @18 cost to S 12 and P sold 150 units to external @20

find the following amounts for year 2 :

upstream unrealized gross profit become realized

downstream unrealized gross profit become realized

upstream realized gross profit become unrealized

downstream realized gross profit become unrealized

upstream unrealized gross profit still unrealized

downstream unrealized gross profit still unrealized

adjusted net income of S before gross profit adjustments

adjusted net income of S after upstream gross profit adjustments

adjusted net income of S before upstream gross profit adjustments

unamortized differences beginning of year

unamortized differences ending of year

NCI share

income from S

changes of investment in s

changes in NCI

NCI share IN consolidated income statement

income from S in consolidated income statement

investment in S in the books of P beginning of the year

investment in S in the books of P ending of the year

NCI in consolidated balance sheet