Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Phone Corporation owns B0 percent of Smart Company's stock. Al the end of 20XB, Phone and Seart reported the following para operating results and Inventory
Phone Corporation owns B0 percent of Smart Company's stock. Al the end of 20XB, Phone and Seart reported the following para operating results and Inventory balances: Phone CORAL 3700,000 154.700 C 0122.000 Ternate Sales Sant Company Be to Phone Corporation Nec in operating income excluding investment income from Smart) Inventory on hand, December 31, 20x8, purchased from Smart Company Phone corporation 254,700 30,000 10.000 SD, 140 16.410 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? Amur b What amount of cost of goods sold will be reported in the 20XB Contiolidated income statement? (Do not found intermediate calculations and round your final answers to nearest whole dollar amount.) Acades c. What amount of consolidated net income and income to controlling interest will be reported in the 20x consolidated Income staternent? Consolidated net income Income to controlling interest d. What balance will be reported for inventory in the consolidated balance sheet for December 31, 20X8? Inventory
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started