Pine Company holds 60% of Spruce Company stock.

Pine has sold inventory to Spruce Company as follows:

Year cost to Pine Sales to Spruce Percent of Sold Inventory held at Year end

2017 $193,000 $347,000 30%

2018 $206,000 $310,000 20%

2019 $360,000 $450,000 45%

2020 $450,000 $750,000 30%

The following balances were included in the individual

financial statements of each company for the year ended

12/31/2020:

Pine Co. Spruce

Sales $ 5,100,000 3,900,000

Cost of goods sold $ 3,570,000 2,400,000

Merchandise inventory $ 580,000 390,000

a. What will be reported as consolidated sales in the year 2020?

b. What will be reported as consolidated inventory at 12/31/2020?

c. What will be reported as consolidated cost of goods sold for 2020?

d. Were the intra-entity sales of inventory items upstream or

downstream?