Question
What is consolidated net income for Placid Lake and its subsidiary? If the intra-entity sales were upstream, how would consolidated net income be allocated to
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What is consolidated net income for Placid Lake and its subsidiary?
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If the intra-entity sales were upstream, how would consolidated net income be allocated to the controlling and noncontrolling interest?
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If the intra-entity sales were downstream, how would consolidated net income be allocated to the controlling and noncontrolling interest?
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What is the consolidated balance in the ending Inventory account?
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Assume that no intra-entity inventory sales occurred between Placid Lake and Scenic. Instead, in 2020, Scenic sold land costing $54,000 to Placid Lake for $98,000. On the 2021 consolidated balance sheet, what value should be reported for land?
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f-1. Assume that no intra-entity inventory or land sales occurred between Placid Lake and Scenic. Instead, on January 1, 2020, Scenic sold equipment (that originally cost $170,000 but had a $84,000 book value on that date) to Placid Lake for $118,000. At the time of sale, the equipment had a remaining useful life of five years. What worksheet entries are made for a December 31, 2021, consolidation of these two companies to eliminate the impact of the intra-entity transfer?
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f-2. Assume that no intra-entity inventory or land sales occurred between Placid Lake and Scenic. Instead, on January 1, 2020, Scenic sold equipment (that originally cost $170,000 but had a $84,000 book value on that date) to Placid Lake for $118,000. At the time of sale, the equipment had a remaining useful life of five years. For 2021, what is the noncontrolling interests share of Scenics net income?
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