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 $$550,000.$ Any excess fair value was assigned to intangible assets and amortized at a rate of $$8,000$ per year.

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

$$450,000.$ Scenic reported net income of $$260,000.$ Placid Lake declared $$140,000$ in dividends during this period; Scenic paid

$$55,000.$ At the end of $2021,$ selected figures from the two companies' balance sheets were as follows:

During $2020,$ intra$-$entity sales of $$150,000($original cost of $$72,000)$ were made. Only $30$ percent of this inventory was still held within

the consolidated entity at the end of $2020.$ In $2021,$$$240,000$ in intra$-$entity sales were made with an original cost of $$74,000.$ Of this

merchandise, $40$ 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

$$45,000$ to Placid Lake for $$80,000.$ 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 equipmenPlacid 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 $$550,000.$ Any excess fair value was assigned to intangible assets and amortized at a rate of $$8,000$ per year.

Placid Lake's $2021$ net income before consideration of its relationship with Scenic $($and before adjustments for intra$-$entity sales$)$ was $$450,000.$ Scenic reported net income of $$260,000.$ Placid Lake declared $$140,000$ in dividends during this period; Scenic paid $$55,000.$ At the end of $2021,$ selected figures from the two companies' balance sheets were as follows:

Placid Lake

Scenic

Inventory

$ $290,000$

$ $105,000$

Land

$750,000$

$350,000$

Equipment $($net$)$

$450,000$

During $2020,$ intra$-$entity sales of $$150,000($original cost of $$72,000)$ were made. Only $30$ percent of this inventory was still held within the consolidated entity at the end of $2020.$ In $2021,$ $$240,000$ in intra$-$entity sales were made with an original cost of $$74\mathrm{.}000.$ Of this merchandise, $40$ 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 $$45,000$ to Placid Lake for $$80,000.$ 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 $$140,000$ but had a $$75\mathrm{.}000$ book value on that date$)$ to Placid Lake for $$100,000.$ 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 $$140,000$ but had a $$75,000$ book value on that date$)$ to Placid Lake for $$100,000.$ 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?