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P percentage in $60% S equity at acquesition consist of 300000 common stock and 100000 retained earning inventory understaed 20000 of which 80% sold in
P percentage in $60% S equity at acquesition consist of 300000 common stock and 100000 retained earning inventory understaed 20000 of which 80% sold in y1 and 15% 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 y 2 sales from P to S year 2 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 $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 NCl share income from s changes of investment in s changes in NCl 'NCl 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 NCl in consolidated balance sheet
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