Scroll down to complete all parts of this task. On January 1, Year 1, Entity A acquired 60% of Entity B's voting interests for $100,000. The carrying amount of Entity B's assets and liabilities on that date equals their fair values. The noncontrolling interest (NCI) is measured at its fair value of $50,000. Entity A and Entity B use the same accounting principles, and no consolidating adjustments need to be made for intraentity transactions, etc., except as described below. The trial balances on December 31, Year 1, of Entity A and Entity B before consolidation are presented below. Account Entity B. Entity A Cash $ 124,000 $ 69,000 Trade receivables 36,000 29,000 Inventories 63,000 34,000 Current investments 24,000 PPE (net) 106,000 50,000 Investment in Entity B 100,000 Trade payables (29,000) (52,000) Liability for employee benefits (43,000) (62,000) LUCHLIVCSLITICHILD PPE (net) Investment in Entity B Trade payables Liability for employee benefits Noncurrent loans payable Common stock Additional paid-in capital Retained earnings January 1, Year 1 Net sales Cost of sales General and administrative expenses Interest expense Dividend income received from Entity B Income tax expense Dividends declared and paid 24,UUU 106,000 50,000 100,000 (29,000) (52,000) (43,000) (62,000) (90,000) (33,000) (40,000) (37,000) (21,000) (55,000) (78,000) (150,000) (120,000) 50,000 61,000 8,000 17,000 4,000 6,000 (24,000) 7,000 6,000 40,000 . Additional information: . In its separate financial statements, Entity A accounts for its investment in the subsidiary (Entity B) according to the cost model. Thus, dividends from the subsidiary are recognized as income. During Year 1, Entity B distributed a cash dividend of $40,000. On December 31, Year 1, Entity A sold on credit an inventory item with a cost of $20,000 to Entity B for $28,000. This item is in Entity B's inventory at year end. Note: To simplify the simulation, items of other comprehensive income are not included. Complete Entity A's year-end consolidated income statement. Enter the appropriate amounts in the designated cells below. Enter all amounts as positive values. If no entry is necessary, enter a zero (O). Item Amount 1 year after acquisition 1. Net sales 123 2. Cost of sales 123 3. Dividend income 123 4. Net income 123 Amou 1 year after acquisition 1. Net sales 123 2. Cost of sales 123 3. Dividend income 123 4. Net income 123 5. Net income attributable to the NCI 123 6. Net income attributable to the parent 123 Scroll down to complete all parts of this task. On January 1, Year 1, Entity A acquired 60% of Entity B's voting interests for $100,000. The carrying amount of Entity B's assets and liabilities on that date equals their fair values. The noncontrolling interest (NCI) is measured at its fair value of $50,000. Entity A and Entity B use the same accounting principles, and no consolidating adjustments need to be made for intraentity transactions, etc., except as described below. The trial balances on December 31, Year 1, of Entity A and Entity B before consolidation are presented below. Account Entity B. Entity A Cash $ 124,000 $ 69,000 Trade receivables 36,000 29,000 Inventories 63,000 34,000 Current investments 24,000 PPE (net) 106,000 50,000 Investment in Entity B 100,000 Trade payables (29,000) (52,000) Liability for employee benefits (43,000) (62,000) LUCHLIVCSLITICHILD PPE (net) Investment in Entity B Trade payables Liability for employee benefits Noncurrent loans payable Common stock Additional paid-in capital Retained earnings January 1, Year 1 Net sales Cost of sales General and administrative expenses Interest expense Dividend income received from Entity B Income tax expense Dividends declared and paid 24,UUU 106,000 50,000 100,000 (29,000) (52,000) (43,000) (62,000) (90,000) (33,000) (40,000) (37,000) (21,000) (55,000) (78,000) (150,000) (120,000) 50,000 61,000 8,000 17,000 4,000 6,000 (24,000) 7,000 6,000 40,000 . Additional information: . In its separate financial statements, Entity A accounts for its investment in the subsidiary (Entity B) according to the cost model. Thus, dividends from the subsidiary are recognized as income. During Year 1, Entity B distributed a cash dividend of $40,000. On December 31, Year 1, Entity A sold on credit an inventory item with a cost of $20,000 to Entity B for $28,000. This item is in Entity B's inventory at year end. Note: To simplify the simulation, items of other comprehensive income are not included. Complete Entity A's year-end consolidated income statement. Enter the appropriate amounts in the designated cells below. Enter all amounts as positive values. If no entry is necessary, enter a zero (O). Item Amount 1 year after acquisition 1. Net sales 123 2. Cost of sales 123 3. Dividend income 123 4. Net income 123 Amou 1 year after acquisition 1. Net sales 123 2. Cost of sales 123 3. Dividend income 123 4. Net income 123 5. Net income attributable to the NCI 123 6. Net income attributable to the parent 123
