Please help with the ones marked incorrect!

Question 1 Partially correct Mark 54.74 out of 80.00 p Flag question Calculation of Investment Balance, Comprehensive Eliminating Entries, Variety of Intercompany Transactions Poplar Outdoor Corporation owns 50 percent of the voting stock of sugg Australia. Date-of-acquisition information is as follows: Acquisition cost: $39.5 million Fair value of the noncontrolling interest: $20.5 million Sugg's book value: $10 million Value of unreported acquired indefinite lived trademarks: 515 million. As of the beginning of the current year, trademarks are impaired by $2 million, and goodwill impairment is $5 million. There is no current year impairment for the trademarks, but current year goodwill impairment is $1 million. Sugg reports net income of $1.5 million for the current year, and declares no dividends. Its total equity at the beginning of the year is $19 million. Following is information on intercompany transactions between Poplar and Sugg Sugg sold land to Poplar in the current year at a loss of $500,000. Poplar still owns the land. Intercompany profit in Poplar's beginning inventory, purchased from Sugg, is $200,000. Intercompany profit in Poplar's ending inventory, purchased from Sugg, is $290,000 Total sales from Sugg to Poplar, at the price charged to Poplar, were $6 million. Poplar sold administrative facilities with a book value of $8 million to Sugg two years ago, at the beginning of the year, for $7 million. The facilities had a remaining life of 10 years, straight-line. Sugg still uses the facilities. Required a. Prepare a schedule to compute equity in net income and noncontrolling interest in net income for the current year, assuming Poplar uses the complete equity method. Instructions: 1. Enter answers in thousands. For example, $900,000 is $900 in thousands and $15 million is $15,000 in thousands. 2. Use negative signs with answers that reduce the net income amounts. 3. HINT: Goodwill share to controlling interest is 70% (NCI's share is 3096). Equity Noncontrolling in NI Interest in NI Sugg reported net income S 900 5 600 Goodwill impairment loss (700) (300) Intercompany transactions: Upstream land loss Upstream confirmed profit on beg inventory 120 Upstream unconfirmed profit on end. inventory (174) (116) Downstream confirmed loss on facilities sale (100) Total 3465 464 300 200 80 S b. Compute the investment balance on Poplar's books at the end of the current year. Instructions: 1. Enter answers in thousands. For example, $900,000 is $900 in thousands and $15 million is $15,000 in thousands. 2. Use negative signs with answers that reduce the investment balance. 3. HINT: Goodwill share to controlling interest is 70% (NCI's share is 30%). s Investment original cost Change in Sugg's book value to beginning of current year Trademark impairment to beginning of current year Goodwill impairment to beginning of current year Upstream unconfirmed profit on beginning inventory Unconfirmed loss on downstream facilities sale Investment balance beginning of current year Equity in net income for current year Investment balance, end of current year 39.500 5,400 (1.200) (3.500) (40) x OX s OX C. Prepare the current year eliminating entries (C). (0), (E), (R), (O), and (N), to consolidate the end-of-year trial balances of Poplar and Sugg. Enter answers in thousands. For example, $900,000 is $900 in thousands and $15 million is $15,000 in thousands. Consolidation Journal Ref. Description Debit Credit (C) Equity in net income 500 x 0 Investment in Sugg 500 x (I-1) Land 200 X Loss on sale of land 200 x To eliminate unconfirmed intercomany loss on sale of land (1-2) Equity, beginning Cost of goods sold OX To eliminate unconfirmed intercompany profit in beg. inventory. (1-3) Cost of goods sold Inventories Ox To eliminate unconfirmed intercompany profit in end. inventory. (1-4) Sales revenue Cost of goods sold Ox To eliminate intercompany sales and purchases. (1-5) Facilities, net OX Investment in Sugg OX To eliminate the beg. of year unconfirmed loss on facilities sale. (1-6) Depreciation expense Facilities, net Ox To recognize excess depreciation based on original book value. (E) Equity, beginning Investment in Sugs Ox Noncontrolling interest in SUBE OX Trademarks 0 x Goodwill Investment in Sugg Noncontrolling interest in Suss Ox (0) Goodwill impairment loss Goodwill (N) Noncontrolling interest in NI Noncontrolling interest in Suss OX . ||