Angela, Inc., holds a 90 percent interest in Corby Company. During 2017, Corby sold inventory costing $77,000 to Angela for $110,000. Of this inventory, $40,000 worth was not sold to outsiders until 2018. During 2018, Corby sold inventory costing $72,000 to Angela for $120,000. A total of $50,000 of this inventory was not sold to outsiders until 2019. In 2018, Angela reported separate net income of $150,000 while Corby’s net income was $90,000 after excess amortizations. What is the noncontrolling interest in the 2018 income of the subsidiary?a. $8,000b. $8,200c. $9,000d. $9,800

Jellicent Corporation is an 80% owned subsidiary of Frilish Corporation. During 2018, Jellicent sold merchandise that cost P120,000 to Frilish for P160,000. Frilish’s ending inventory at December 31, 2018 contained unrealized profit of P8,000 from the intercompany sales.During 2019, Jellicent sold merchandise that cost P140,000 to Frilish for P190,000. One-half of this remained unsold by Frilish at December 31, 2019. For 2019, Frilish’s separate income (does not include investment income) was P250,000 and Jellicent 's reported net income was P190,000. The consolidated net income attributable to parent for 2019 will be: *a. P356,000b. P388,400c. P342,500d. P377,500

Tiberend, Inc., sold $150,000 in inventory to Schilling Company during 2017 for $225,000. Schilling resold $105,000 of this merchandise in 2017 with the remainder to be disposed of during 2018. Assuming that Tiberend owns 25 percent of Schilling and applies the equity method, what journal entry is recorded at the end of 2017 to defer the intra-entity gross profit?

Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago. During 2020, Skybox sold inventory costing $90,200 to Parkette for $110,000. A total of 12 percent of this inventory was not sold to outsiders until 2021. During 2021, Skybox sold inventory costing $294,800 to Parkette for $335,000. A total of 29 percent of this inventory was not sold to outsiders until 2022. In 2021, Parkette reported cost of goods sold of $527,500 while Skybox reported $422,500. What is the consolidated cost of goods sold in 2021?   Multiple Choice a $605,718.   b $959,282.   c $635,400.   d $624,282.

Belden, Inc. acquires 30 percent of the outstanding voting shares of Sheffield, Inc. on January 1, 2017, for $316,000, which gives Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $796,000 at January 1, 2017. Sheffield's asset and liability accounts showed carrying amounts considered equal to fair values except for a copyright whose value accounted for Belden's excess cost over book value in its 30 percent purchase. The copyright had a remaining life of 16 years at January 1, 2017. No goodwill resulted from Belden's share purchase.   Sheffield reported net income of $192,000 in 2017 and $232,000 of net income during 2018. Dividends of $64,000 and $96,000 are declared and paid in 2017 and 2018, respectively. Belden uses the equity method.   On its 2018 comparative income statements, how much income would Belden report for 2017 and 2018 in connection with the company's investment in Sheffield? If Belden sells its entire investment in…

In January 2018, Janeway Inc. doubled the amount of itsoutstanding stock by selling on the market an additional10,000 shares to finance an expansion of the business. Youpropose that this information be shown by a footnote on thebalance sheet as of December 31, 2017. The president objects,claiming that this sale took place after December 31, 2017,and therefore should not be shown. Explain your position.

High owns 60% of Low. In 2019, Low sold inventory (cost $70,000) to High for $100,000.  40% of this inventory was not sold to third parties by High until 2020.   In 2020, Low sold inventory (cost $72,000) to High for $120,000. Of this inventory, $50,000 was not sold to third parties by High until 2021.   In 2020, Low reports $70,000 of net income. What is the noncontrolling interest in 2020 income of Low.     $24,800       $37,200     $31,200     $46,800

Hide Corporation is a wholly owned subsidiary of Seek Company. During 2015, Hide sold all of its production to Seek Company for $400,000, a price that includes a 25% gross profit. 2015 was the first year that such intercompany sales were made. By year-end, Seek sold, for $416,000, 80% of the goods it had purchased. The balance of the intercompany goods, $80,000, remained in the ending inventory and was adjusted to a lower fair value of $70,000. The adjustment was a charge to the cost of goods sold.1. Determine the gross profit on sales recorded by both companies.2. Determine the gross profit to be shown on the consolidated income statement.

Pop acquired a 60 percent interest in Son on January 1, 2016, for $360,000, when Son’s net assets had a book value and fair value of $600,000. During 2016, Pop sold inventory items that cost $600,000 to Son for $800,000, and Son’s inventory at December 31, 2016, included one-fourth of this merchandise. Pop reported separate income from its own operations (excludes investment income) of $300,000, and Son reported a net loss of $150,000 for 2016. Controlling share of consolidated net income for Pop Corporation and Subsidiary for 2016 is: $260,000 $180,000 $160,000 $100,000

Belden, Inc. acquires 30 percent of the outstanding voting shares of Sheffield, Inc. on January 1, 2017, for $312,000, which gives Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $800,000 at January 1, 2017. Sheffield’s asset and liability accounts showed carrying amounts considered equal to fair values except for a copyright whose value accounted for Belden’s excess cost over book value in its 30 percent purchase. The copyright had a remaining life of 16 years at January 1, 2017. No goodwill resulted from Belden’s share purchase.Sheffield reported net income of $180,000 in 2017 and $230,000 of net income during 2018. Dividends of $70,000 and $80,000 are declared and paid in 2017 and 2018, respectively. Belden uses the equity method.a. On its 2018 comparative income statements, how much income would Belden report for 2017 and 2018 in connection with the company’s investment in Sheffield?b. If Belden sells its entire investment in Sheffield on…