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Pie Bakery owns 6 0 percent of Slice Products Company's stock. On January 1 , 2 0 X 9 , inventory reported by Pie included
Pie Bakery owns percent of Slice Products Company's stock. On January X inventory reported by Pie included bags
of flour purchased from Slice at $ per bag. By December X all the beginning inventory purchased from Slice Products had
been baked into products and sold to customers by Pie. There were no transactions between Pie and Slice during
Both Pie Bakery and Slice Products price their sales at cost plus percent markup for profit. Pie reported income from its baking
operations of $ and Slice reported net income of $ for X
Required:
a Compute the amount reported as cost of goods sold in the consolidated income statement for the flour purchased from Slice
in
Note: Do not round intermediate calculations.
Answer is complete and correct.
b Prepare the consolidation entry or entries required to remove the effects of the unrealized profit in beginning inventory in preparing
the consolidation worksheet as of December
Note: Do not round intermediate calculations.
c Compute the amounts reported as consolidated net income and income assigned to the controlling interest in the
consolidated income statement.
Note: Do not round intermediate calculations.
Answer is not complete.
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