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Power Products Corporation, which sells a broad line of home detergent products, owns 75 percent of the stock of Scrub Soop Company. During 208, Scrub
Power Products Corporation, which sells a broad line of home detergent products, owns 75 percent of the stock of Scrub Soop Company. During 208, Scrub sold soap products to Power Froducts for $180,000, which it had produced for $120,000. Power Products sold $150,000 of its purchase from Scrub in 208 and the remainder in 209. In adolition, Power Products purchased $240,000 of inventory from Scrub in 209 and resold $90,000 of the items before year-end. Scrub's cost to produce the items sold to Power Products in 209 was 5160,000. Required: a. Prepore the worksheet consolidstion entries needed for December 31,209, to remove the effects of the intercompony inventory trungfers in 208 and 209 Note: If no entry Is required for a transactlon/event, select "No journal entry required" in the first account field. Consolidation Worksheet Entries Record the entry to reverse the 208 gross profit deferral. Note: Enter debits befare credits. b. Compute the amount of income assigned to noncontrolling shareholders in the 208 and 209 consolidsted income statements if Scrub reported net income of $350,000 for 208 and $420,000 for 209
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