Wren Corporation acquired 80% ownership of Arid Incorporated, at a time when Wrens investment (using the equity method) and Arids book values were equal. During 2005, Wren sold goods to Arid for $200,000 making a gross profit percentage of 20%. Half of these goods remained unsold in Arids inventory at the end of the year. Income statement information for Wren and Arid for 2005 were as follows:

Wren Arid

Sales Revenue $1,000,000 $600,000 Cost of Goods Sold 500,000 400,000 Operating Expenses 500,000 80,000 Separate Incomes $250,000 $120,000

The 2005 consolidated income statement showed cost of goods sold of ________.

$720,000. $880,000. $900,000. $920,000. The 2005 consolidated income statement showed income from Arid of _________. a. $56,000. b. $76,000. c. $80,000. d. $96,000.

The 2005 consolidated income statement showed noncontrolling interest share of _______ a. $ 2,000. b. $ 8,000. c. $20,000. d. $24,000.