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Several years ago, Swanson Incorporated acquired an 8 0 % interest in Haverford Company. The book values of Haverford's asset and liability accounts at that

Several years ago, Swanson Incorporated acquired an 80% interest in Haverford Company. The book values of Haverford's asset and liability accounts at that time were considered to be equal to their fair values. Swansons acquisition value corresponded to the underlying book value of Haverford so that no allocations or goodwill resulted from the transfer.Several years ago, Swanson Incorporated acquired an 80% interest in Haverford Company. The book values of Haverford's asset
and liability accounts at that time were considered to be equal to their fair values. Swanson's acquisition value corresponded to the
underlying book value of Haverford so that no allocations or goodwill resulted from the transfer.
The following selected account balances were from the individual financial records of these two companies as of December 31,
2024:
Assume that Haverford sold inventory to Swanson at a markup equal to 25% of cost. Intra-entity transfers were $70,000 in 2023
end $112,000 in 2024. Of this inventory, $29,000 of the 2023 transfers were retained and then sold by Swanson in 2024, whereas
$49,000 of the 2024 transfers were held until 2025.
Requlred:
For the consolidated financial statements for 2024, determine the balances that would appear for the following accounts: (i) Cost
ff Goods Sold; (ii) Inventory; and (iii) Net income attributable to the noncontrolling interest.
The following selected account balances were from the individual financial records of these two companies as of December 31,2024:
Swanson Haverford
Sales $ 896,000 $ 504,000
Cost of goods sold 406,000276,000
Operating expenses 210,000147,000
Retained earnings, 1/1/241,036,000252,000
Inventory 484,000154,000
Buildings (net)501,000220,000
Investment income not given
Assume that Haverford sold inventory to Swanson at a markup equal to 25% of cost. Intra-entity transfers were $70,000 in 2023 and $112,000 in 2024. Of this inventory, $29,000 of the 2023 transfers were retained and then sold by Swanson in 2024, whereas $49,000 of the 2024 transfers were held until 2025.
Required:
For the consolidated financial statements for 2024, determine the balances that would appear for the following accounts: (i) Cost of Goods Sold; (ii) Inventory; and (iii) Net income attributable to the noncontrolling interest.
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