Placid Lake Corporation acquired $90$ percent of the outstanding voting stock of Scenic, Inc., on January $1,2020,$ when Scenic had a

net book value of $$490,000.$ Any excess falr value was assigned to intanglble assets and amortized at a rate of $$7,000$ per year.

Placid Lake's $2021$ net Income before consideration of its relationship with Scenic $($and before adjustments for Intra$-$entity sales$)$ was

$$390,000.$ Scenic reported net income of $$200,000.$ Plazid Lake declared $$190,000$ in dividends during this perlod; Scenic paid

$$49,000.$ At the end of $2021,$ selected figures from the wo companles' balance sheets were as follows:

During $2020,$ intra$-$entity sales of $$120,000($original cost of $$60,000)$ were made. Only $30$ percent of this inventory was still held within

the consolidated entity at the end of $2020.$ In $2021,$ $$180,000$ in intra$-$entity sales were made with an original cost of $$68,000.$ Of this

merchandise, $40$ percent had not been resold to outside partles 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

$$39,000$ to Placid Lake for $$68,000.$ On the $2021$ consolidated balance sheet, what value should be reported for land?

f$-1.$ 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 $$190,000$ but had a $$69,000$ book value on that date$)$ to Placid Lake for $$98,000.$ 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?

f$-2.$ Assume that no Intra$-$entity Inventory or land sales occurred between Placid Lake and Scenic. Instead, on January $1,2020,$ Scenic

sold equipment $($that originally cost $$190,000$ but had a $$69,000$ book value on that date$)$ to Placid Lake for $$98,000.$ 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 Scenic's net

Income?

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