Requirement 6, I-5: Confirmed downstream profit in Beginning Inventory Requirement 6, I-6: Unconfirmed profits in Ending Inventory (consolidation entry may be combined but list separately on Equity in Net Income schedule) Upstream Downstream Requirement 6, I-7: Confirmed gain on sale of 2020 downstream transfer of a land Paradise Corporation acquired 80 percent (8,000) of the 10,000 outstanding shares of voting stock of Sun 'n Shade Company, on January 2, 2019, paying \$27.25 a share when the stock was selling at $26 (Hint: Controlling Interest is valued at the price actually paid. Noncontrolling hiterest is valued at the cturent stock price). At the date of acquisition, Sun 'n Shade had Capital Stock (no par value) of $10,000, Retained Eamings of $119,300, and Accumulated Other Comprehensive Income of \$3,700. Paradise uses the complete equity method to account for its investment in Sun 'n Shade. At the date of acquisition, Sun 'n Shade's assets and liabilities were fairly reported except for the following. There was no contingent consideration. Revaluations are amortized on a straight-line basis. Identifiable intangible assets and goodwill arising from this acquisition are tested annually for impairment. IPRD was impaired during 2019-2021 for $2,500. - Sun " n Shade paid $1,500 in dividends. - In 2022, Sun "n Shade charged Paradise $10,000 for janitorial services costing S7,500. See Requirement 6, I-1. - Paradise and Sun n Shade regularly sell merchandise to each other. During 2022, they made the following transfers: See Requirement 6,11 through I-6. Paradise's inventories were purchased from Sun 'n Shade & vice versa. Goodwill is tested for impairment annually. Impairments from 2019 to 2021 amounted to $3,000. At December 31,2022 the fair value of Sun ' n Shade is $400,000 and the fair value of its net identifiable assets is $375,000. See Requirement 5. - In 2020, Paradise sold land costing $5,000 to Sun 'n Shade for $5,500. In 2022, Sun 'n Shade sold the land for $6,250. See Requirement 6, I-7. - During 2022, Sun ' n Shade sold Land to Paradise with a book value of $2,750 for $3,000. Paradise still holds the land. See Requirement 6, I-8. - In 2019, Sun 'n Shade sold equipment costing $1,750 with $900 in accumulated depreciation, to Paradise for $1,500. Sun 'n Shade estimates the equipment has a 10 -year remaining life and will depreciate the equipment straight-line. Paradise still holds the equipment at the end of 2022 . See Requirement 6, I-9. Requirement 6, I-5: Confirmed downstream profit in Beginning Inventory Requirement 6, I-6: Unconfirmed profits in Ending Inventory (consolidation entry may be combined but list separately on Equity in Net Income schedule) Upstream Downstream Requirement 6, I-7: Confirmed gain on sale of 2020 downstream transfer of a land Paradise Corporation acquired 80 percent (8,000) of the 10,000 outstanding shares of voting stock of Sun 'n Shade Company, on January 2, 2019, paying \$27.25 a share when the stock was selling at $26 (Hint: Controlling Interest is valued at the price actually paid. Noncontrolling hiterest is valued at the cturent stock price). At the date of acquisition, Sun 'n Shade had Capital Stock (no par value) of $10,000, Retained Eamings of $119,300, and Accumulated Other Comprehensive Income of \$3,700. Paradise uses the complete equity method to account for its investment in Sun 'n Shade. At the date of acquisition, Sun 'n Shade's assets and liabilities were fairly reported except for the following. There was no contingent consideration. Revaluations are amortized on a straight-line basis. Identifiable intangible assets and goodwill arising from this acquisition are tested annually for impairment. IPRD was impaired during 2019-2021 for $2,500. - Sun " n Shade paid $1,500 in dividends. - In 2022, Sun "n Shade charged Paradise $10,000 for janitorial services costing S7,500. See Requirement 6, I-1. - Paradise and Sun n Shade regularly sell merchandise to each other. During 2022, they made the following transfers: See Requirement 6,11 through I-6. Paradise's inventories were purchased from Sun 'n Shade & vice versa. Goodwill is tested for impairment annually. Impairments from 2019 to 2021 amounted to $3,000. At December 31,2022 the fair value of Sun ' n Shade is $400,000 and the fair value of its net identifiable assets is $375,000. See Requirement 5. - In 2020, Paradise sold land costing $5,000 to Sun 'n Shade for $5,500. In 2022, Sun 'n Shade sold the land for $6,250. See Requirement 6, I-7. - During 2022, Sun ' n Shade sold Land to Paradise with a book value of $2,750 for $3,000. Paradise still holds the land. See Requirement 6, I-8. - In 2019, Sun 'n Shade sold equipment costing $1,750 with $900 in accumulated depreciation, to Paradise for $1,500. Sun 'n Shade estimates the equipment has a 10 -year remaining life and will depreciate the equipment straight-line. Paradise still holds the equipment at the end of 2022 . See Requirement 6, I-9