Placid Lake Corporation acquired 70 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2020, when Scenic had a net book value of $470,000. Any excess fair value was assigned to Intangible assets and amortized at a rate of $5,000 per year . Placid Lake's 2021 net Income before consideration of its relationship with Scenic (and before adjustments for Intra-entity sales) was $370,000. Scenic reported net income of $180,000. Placid Lake declared $170,000 in dividends dunng this period Scenic paid $47.000. At the end of 2021, selected figures from the two companies' balance sheets were as follows: Inventory Land Equipment (net) Placid Lake Scenic $ 210,000$ 97,000 670,000 270,000 470,000 370,000 During 2020. Intra entity sales of $110,000 (original cost of $56,000) were made Only 10 percent of this Anventory was still held within the consolidated entity at the end of 2020. In 2021. $160.000 in intra-entity sales wete made with an original cost of $66.000. Of this merchandise, 20 percent had not been resold to outside parties by the end of the year. Each of the following questions should be considered as an independent situation for the year 2021 a. What is consolidated net income for Placid Lake and its subsidiary? b. If the intra-entity sales were upstream how would consolidated net income be allocated to the controlling and noncontrolling interest? c. If the intra-entity sales were downstream, how would consolidated net income be allocated to the controlling and noncontrolling interest? d. What is the consolidated balance in the ending Inventory account? e. Assume that no intra-entity inventory sales occurred between Placid Lake and Scenic Instead, in 2020, Scenic sold land costing $37.000 to Placid Lake for $64,000. On the 2021 consolidated balance sheet, what value should be reported for land? 1.1. Assume that no intro entity inventory or land sales occurred between Placid Lake and Scenic Instead, on January 1, 2020, Scenic sold equipment (that originally cost $170,000 but had a $67,000 book value on that dato) to Placid Lake for $94,000. At the time of sale, the equipment hoda remaining useful life of tive years. What worksheet entries are made for a December 31, 2021, consolidation of these two companies to eliminate the impact of the intra entity transfor? 1-2. Assume that no intra-entity inventory or land sales occurred between Placid Lake and Scenic Instead, on January 1, 2020. Scenic sold equipment that orginally cost $170,000 but had a $67,000 book value on that date) to Placid Lake for $94,000. At the time of sale, the equipment had a remaining useful life of five years. For 2021. what is the noncontrolling interest's share of Sconic's net income? O a. What is consolidated net income for Placid Lake and its subsidiary? b. If the intra-entity sales were upstream how would consolidated net income be allocated to the controlling and noncontrolling Interest? c. If the Intra-entity sales were downstream, how would consolidated net Income be allocated to the controlling and noncontrolling Interest? d. What is the consolidated balance in the ending Inventory account? e. Assume that no intre entity inventory sales occurred between Placid Lake and Scenic Instead, in 2020, Scenic sold land costing $37000 to Placid Lake for $64,000. On the 2021 consolidated balance sheet what value should be reported for land? A. Assume that no intra entity inventory or land sales occurred between Placid Lake and Scenic Instead, on January 1, 2020, Scenic vold equipment (that originally cost $170,000 but had a $67,000 book value on that date) to Placid Lake for $94,000. At the time of sale, the equipment had a remaining useful life of five years. What worksheet entries are made for a December 31, 2021 consolidation of these two companies to eliminate the impact of the intro-entity transfer? 1.2. Assume that no intra-entity Inventory or land sales occurred between Placid Lake and Scenie. Instead, on January 1, 2020, Scenic sold equipment that originally cost $170,000 but had a $67000 book value on that date to Placid Lake for $94,000. At the time of sale, the qument had a remaining useful life of five years. For 2021, what is the noncontrolling interest's share of Scenic's het come? Complete this question by entering your answers in the tabs below RA and cand Ren Reg 2 What is content income for Macid Lake and its subsidiary? Read > RA Re Band Reg D and E Req F1 Reg F2 b. If the intra-entity sales were upstream, how would consolidated net income be allocated to the controlling and noncontrolling interest c. If the intra-entity sales were downstream, how would consolidated net income be allocated to the controlling and noncontrolling interest? Controlling Show less Non-controlling Interest Us Down BA ay and Complete this question by entering your answers in the tabs below. Req Red Band RedDRE Reg 1 Red F2 d. What is the consolidated balance in the ending Inventory account? e. Assume that no intra-entity Inventory sales occurred between Placid Lake and Scenic Instead, in 2020, Scenic sold land costing $37,000 to Placid Lake for $64,000. On the 2021 consolidated balance sheet, what value should be reported for land Show less Contentory Contodate and blance Req A Reg B and C Reg D and E Reg F1 Reg F2 Assume that no intra-entity Inventory or land sales occurred between Placid Lake and Scenic. Instead, on January 1, 2020, Scenic sold equipment (that originally cost $170,000 but had a $67,000 book value on that date) to Placid Lake for $94,000. At the time of sale, the equipment had a remaining useful life of five years. What worksheet entries are made for a December 31, 2021, consolidation of these two companies to eliminate the impact of the Intra-entity transfer? (If no entry is required for a transaction/event, select "No journal entry required" in the first account held.) Show less view transaction list aces Consolidation Worksheet Entries 2 > Prepare entry *TA Note: Enter debits before credits Transaction Accounts Debit Credit 1 Record entry Clear entry view consolidation entries Reg A Reg Band C Reg D and E Reg F1 Assume that no intra-entity Inventory or land sales occurred bed Reg F2 cid Lake and Scenic. Instead, on January 1, 2020, S sold equipment (that originally cost $170,000 but had a $67,000 book value on that date) to Placid Lake for $94,000. At the sale, the equipment had a remaining useful life of five years. What worksheet entries are made for a December 31, 2021, consolidation of these two companies to eliminate the impact of the Intra-entity transferir no entry is required for a transaction/event, select "No foumal entry required in the rst account field. ebook Show Print view transaction list References Consolidation Worksheet Entries