Question 2 (30 marks) ch 6 A- The following information related to Purple Company and its 65% owned subsidairy, which was acquired at book value several years ago. Separate compay income statements for 2017 is shown below: upstrea Subsidiary 3,450,000 100,000 3,550,000 1,500,000 675,000 2,175,000 Net income 1,375,000 On January 1, 2017 Subsidairy sold a land for 300,000 to its parent with a profit of 100,000. (23 marks) Sales Gain on sale of land Total income Cost of goods sold Operating expenses Parent 4,750,000 0 4,750,000 2,750,000 450,000 3,200,000 1,550,000 Total expense Required: 1- Calculate parent's share of subsidiary net income in 2017 2- Prepare journal entries prepared by "parent" during 2017 3- Prepare elimination/adjusting entries for the year 2017 4- Prepare the workingpaper for consolidated Income Statement for 2017 (2 marks) (4 marks) (10.5 marks) (6.5 marks)

Question 2 (30 marks) h6 A- The following information related to Purple Company and its 65% owned subsidairy, which was acquired at book value several years ago. Separate compay income statements for 3017 is shown helow. On January 1, 2017 Subsidairy sold a land tor suv, vuv to its parent witn a pront of 100,000. (23 marks) Question 2 (30 marks) h6 A- The following information related to Purple Company and its 65% owned subsidairy, which was acquired at book value several years ago. Separate compay income statements for 3017 is shown helow. On January 1, 2017 Subsidairy sold a land tor suv, vuv to its parent witn a pront of 100,000. (23 marks)