Phone Corporation owns 80 percent of Smart Company's stock. At the end of 20X8, Phone and Smart reported the following partial operating results and inventory balances: Phone Corporation Smart Company Total sales $ 728,000 $ 543,000 Sales to Smart Company 150,500 Sales to Phone Corporation 250,500 Net income 32,000 Operating income (excluding investment income from Smart) 82,000 Inventory on hand, December 31, 20X8, purchased from: Smart Company 50,100 Phone Corporation 45,150 Phone regularly prices its products at cost plus a 40 percent markup for profit. Smart prices its sales at cost plus a 20 percent markup. The total sales reported by Phone and Smart include both intercompany sales and sales to nonaffiliates. Required: a. What amount of sales will be reported in the consolidated income statement for 20X8? b. What amount of cost of goods sold will be reported in the 20X8 consolidated income statement? (Do not round intermediate calculations and round your final answers to nearest whole dollar amount.) c. What amount of consolidated net income and income to controlling interest will be reported in the 20X8 consolidated income statement? d. What balance will be reported for inventory in the consolidated balance sheet for December 31, 20X8?Answer parts a-d and explain

Phone Corporation owns 80 percent of Smart Company's stock. At the end of 20X8, Phone and Smart reported the following partial operating results and inventory balances: Phone Corporation $728,000 150,500 Smart Company $543,000 250,500 32,000 Total sales Sales to Smart Company Sales to Phone Corporation Net income Operating income (excluding investment income from Smart) Inventory on hand, December 31, 20x8, purchased from: Smart Company Phone Corporation 82,000 50,100 45,150 Phone regularly prices its products at cost plus a 40 percent markup for profit. Smart prices its sales at cost plus a 20 percent markup. The total sales reported by Phone and Smart include both intercompany sales and sales to nonaffiliates. Required: a. What amount of sales will be reported in the consolidated income statement for 20x8? Amount of sales