Urgent question, Penguin Corporation acquired 80% of the outstanding voting stock of Snow Inc.

ACCT4211 Chapter 6 Homework (Spring 2016) Name: _________________________ Penguin Corporation acquired 80% of the outstanding voting stock of Snow, Inc. on December 31, 2015. The fair value of the 20% noncontrolling interest was $105,000 on December 31, 2015. Any excess fair value was assigned to goodwill, which has not been deemed impaired since acquisition. Penguin uses the (fully adjusted) equity method to account for its investment in Snow for internal reporting purposes. During 2016, intercompany sales of $90,000 were made. Of this sale, $20,000 had not been resold to outside parties by the end of 2016. During 2017, intercompany sales of $120,000 were made. Of this sale, $40,000 had not been resold to outside parties by the end of 2017. At the end of 2017, selected figures from the two companies' financial statements, respectively, were as follows: (in thousands) Penguin Snow Sales.................................................. $640 $360 Cost of goods sold............................ 352 216 Investment income from Snow......... not given Operating expenses........................... 150 105 Inventory........................................... 346 110 1. If the intercompany sale were from Penguin to Snow (i.e. ______stream) on the same terms as sales made to outside parties, determine the balances that would appear for the following accounts on the 2017 consolidated financial statements of Penguin and Snow. Sales = ________________________ Cost of goods sold = ________________________ Inventory = ________________________ Consolidated net income = ________________________ Noncontrolling interest in net income of Snow = ________________________ (Note: This is \"consolidated net income attributable to NCI\") 2. If the intercompany sale were from Snow to Penguin (i.e. ______stream) on the same terms as sales made to outside parties, determine the balances that would appear for the following accounts on the 2017 consolidated financial statements of Penguin and Snow. Sales = ________________________ Cost of goods sold = ________________________ Inventory = ________________________ Consolidated net income = ________________________ Noncontrolling interest in net income of Snow = ________________________ (Note: This is \"consolidated net income attributable to NCI\")