Pilot Inc. acquired 60% of Surfing Co. on January 1, 2019. At the time of acquisition, total excess fair value was attributed to customer base and amortized at a rate of $15,000 per year. During 2019, Pilot sold goods with a cost of $595,000 for $850,000 to Surfing. Surfing still owned 10% of the goods at the end of the year. In 2020, Pilot sold goods with a cost of $800,000 to Surfing for $1,000,000, and Surfing still owned 28% of the goods at year-end. For 2020, the companies had the following account balances: Pilot Surfing Sales 6,000,000 2,800,000 Cost of goods sold 4,200,000 1,700,000 Investment income Not given Net income Not given 1,100,000 Requirements: (a) Compute the consolidated sales for 2020. Answer: (b) Compute the consolidated cost of goods sold for 2020. Answer: (C) Compute the noncontrolling interest in Surfing's income for 2020. Answer: (d) Assume that the intra-entity sales were upstream (i.e. assume that it was Surfing who sold inventory to Pilot), compute the noncontrolling interest in Surfing's income for 2020. 1 View as Text