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Please I need an answer Upstream Sales LO 2 LO 5 Shell Company, an 85% owned subsidiary of Plaster Company, sells merchandise to Plaster Company
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Upstream Sales LO 2 LO 5 Shell Company, an 85\% owned subsidiary of Plaster Company, sells merchandise to Plaster Company at a markup of 20% of selling price. Daring 2019 and 2020 , intercompany sales amounted to $442,500 and $386,250, respectively. At the end of zo19, Plaster had one-half of the goods that it purchased that year from Shell in its ending inyentory. Plaster's 2020 ending inventory contained one-fifth of that year's purchases from Shell. There were no intercompany sales prior to 2019. Plaster had net income in 2019 of $750,000 from its own operations and in 2020 its independent income was $780,000, Shell reported net inconse of $322,500 and $335,400 for 2019 and 2020 , respectively, Required: A. Prepare in general journal form all entries necessary on the consolidated financial statement workpapers to eliminate the effects of the intercompany sales for each of the years 2019 and 2020 . B. Calculate the amount of noncontrolling interest to be deducted from consolidated income in the consolidated income statement for 2020 . C. Calculate controlling interest in consolidated income for 2020 Step by Step Solution
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