Sleepy Company, a 70 owned subsidiary of Pickle Corporation, reported net income of $600,000 and paid dividends totaling $225,000 during Year 3 Year 3 amortization of differences between current fair values and carrying amounts of Sleepy's identifiable net assets at the date of the business combination was $112,500 The noncontrolling interest in consolidated net income of Sleepy for Year 3 was A $33,750 B $67,500 C $180,000 D $146,250 The workpaper entry in the year of sale to eliminate unrealized intercompany profit in ending inventory includes a A credit to Ending Inventory (Cost of Sales) B debit to Ending Inventory (Cost of Sales) C credit to Sales D debit to Inventory Balance Sheet In determining controlling interest in consolidated income in the consolidated financial statements, unrealized intercompany profit on inventory acquired by a parent from its subsidiary should A be eliminated to the extent of the parent company's controlling interest in the subsidiary B be eliminated to the extent of the noncontrolling interest in the subsidiary C be eliminated in full D not be eliminated If the fair value of the subsidiary's identifiable net assets exceeds both the book value and the value implied by the purchase price, the workpaper entry to eliminate the investment account A debits Difference Between Implied and Book Value B credits Difference Between Implied and Book Value C debits Excess of Fair Value over Implied Value D debits Difference Between Implied and Fair Value P Company regularly sells merchandise to its 80 owned subsidiary, S Corporation In 2016, P sold merchandise that cost $192,000 to S for $240,000 Half of this merchandise remained in S's December 31, 2016 inventory During 2017, P sold merchandise that cost $300,000 to S for $375,000 Forty percent of this merchandise inventory remained in S's December 31, 2017 inventory Selected income statement information for the two affiliates for the year 2017 is as follows P S Sales Revenue $1,800,000 $900,000 Cost of Goods Sold 1,440,000 750,000 Gross profit $ 360,000 $150,000 Consolidated sales revenue for P and Subsidiary for 2017 are A $2,700,000 B $2,565,000 C $2,325,000 D $2,400,000

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Sleepy Company, a 70%-owned subsidiary of Pickle Corporation, reported net income of $600,000 and paid dividends totaling $225,000 during Year 3. Year 3 amortization of

Sleepy Company, a 70%-owned subsidiary of Pickle Corporation, reported net income of $600,000 and paid dividends totaling $225,000 during Year 3. Year 3 amortization of differences between current fair values and carrying amounts of Sleepy's identifiable net assets at the date of the business combination was $112,500. The noncontrolling interest in consolidated net income of Sleepy for Year 3 was:

	A.	$33,750.
	B.	$67,500.
	C.	$180,000.
	D.	$146,250.

The workpaper entry in the year of sale to eliminate unrealized intercompany profit in ending inventory includes a:

	A.	credit to Ending Inventory (Cost of Sales).
	B.	debit to Ending Inventory (Cost of Sales).
	C.	credit to Sales.
	D.	debit to Inventory - Balance Sheet.

In determining controlling interest in consolidated income in the consolidated financial statements, unrealized intercompany profit on inventory acquired by a parent from its subsidiary should:

	A.	be eliminated to the extent of the parent company's controlling interest in the subsidiary.
	B.	be eliminated to the extent of the noncontrolling interest in the subsidiary.
	C.	be eliminated in full.
	D.	not be eliminated.

If the fair value of the subsidiary's identifiable net assets exceeds both the book value and the value implied by the purchase price, the workpaper entry to eliminate the investment account:

	A.	debits Difference Between Implied and Book Value.
	B.	credits Difference Between Implied and Book Value.
	C.	debits Excess of Fair Value over Implied Value.
	D.	debits Difference Between Implied and Fair Value.

P Company regularly sells merchandise to its 80%-owned subsidiary, S Corporation. In 2016, P sold merchandise that cost $192,000 to S for $240,000. Half of this merchandise remained in S's December 31, 2016 inventory. During 2017, P sold merchandise that cost $300,000 to S for $375,000. Forty percent of this merchandise inventory remained in S's December 31, 2017 inventory. Selected income statement information for the two affiliates for the year 2017 is as follows: