Wholey Foods Company, a 100% owned subsidiary of Amazonial Corporation, was purchased by Amazonial on January 1, 2019 for $500,000 and there were no differences between book value and fair value at date of acquisition.

Wholey Foods purchases inventory from Amazonial at a 40% gross profit. The first year of intercompany sales was 2019, the year of acquisition. The following data is available pertaining to inter-company transactions.

	I/C Sales	Unsold at YE
2019	18,000	1,500
2020	14,000	5,000
2021	15,000	3,000

Wholey Foods had the following Net income and declared dividends for each of the three years.

	Net Income	Dividends Declared
2019	$80,000	$16,000
2020	115,000	12,000
2021	115,000	18,000

Answer the following - do not use ".xx" or "$" in your answers.

1. Is this an upstream or downstream sale? (Respond with either UPSTREAM or DOWNSTREAM)

2. What is the amount of unrealized gross profit to be deferred as of the end of 2019?

3. What is the value of the intercompany inventory unsold in consolidation at the end of 2019?

4. What would be the net change to cost of goods sold on the 2021 consolidation worksheet (so when we consolidate, what would be the total adjustment to COGS in the consolidation worksheet columns)?

5. What is the Equity Income in Subsidiary that Amazonial would show on their separate legal entity financial statements for 2020?

6. What is the Equity Investment balance that Amazonial would show on their separate legal entity financial statements for 2021?