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Please show all work Clint Inc. acquired 70% of Scarlet Co. on January 1,2021 . The total annual excess amortization resulting from the acquisition was
Please show all work
Clint Inc. acquired 70% of Scarlet Co. on January 1,2021 . The total annual excess amortization resulting from the acquisition was $36,000 per year. Clint sold inventory to Scarlet in both years 2021 and 2022. Specifically, in 2021, Clint sold goods with a cost of $400,000 for $700,000 to Scarlet, and Scarlet still owned 18% of these goods at the end of 2021. In 2022, Clint sold goods with a cost of $600,000 for $830,000 to Scarlet, and Scarlet still owned 10% of these goods at the end of 2022. For 2022, the companies reported the following account balances: Requirements: (a) Compute the consolidated sales for 2022. Answer: (b) Compute the consolidated cost of goods sold for 2022. Answer: (c) Compute the noncontrolling interest's share in Scarlet's income for 2022. Answer: (d) Assume that the intra-entity sales were upstream (i.e. assume that it was Scarlet who sold inventory to Clint), compute the noncontrolling interest's share in Scarlet's income for 2022 Step by Step Solution
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