Compute the amount to be reported as sales in the 20X5 consolidated income statement. Compute the amount to be reported as cost of goods sold in the 20X5 consolidated income statement. What amount of income will be assigned to the noncontrolling shareholders in the 20X5 consolidated income statement? What amount of income will be assigned to the controlling interest in the 20X5 consolidated income statement?
Player Company acquired 60 percent ownership of Scout Company’s voting shares on January 1, 20X2. During 20X5, Player purchased inventory for $23,000 and sold the full amount to Scout Company for $33,000. On December 31, 20X5, Scout’s ending inventory included $6,600 of items purchased from Player. Also in 20X5, Scout purchased inventory for $62,000 and sold the units to Player for $92,000. Player included $23,000 of its purchase from Scout in ending inventory on December 31, 20X5.
Summary income statement data for the two companies revealed the following:
| Player Company | Scout Company | |
|---|---|---|
| Sales | $ 351,400 | $ 240,000 |
| Income from Scout | 54,100 | |
| $ 405,500 | $ 240,000 | |
| Cost of Goods Sold | $ 234,000 | $ 112,000 |
| Other Expenses | 56,000 | 27,000 |
| Total Expenses | $ (290,000) | $ (139,000) |
| Net Income | $ 115,500 | $ 101,000 |
Required:
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Compute the amount to be reported as sales in the 20X5 consolidated income statement.
Compute the amount to be reported as cost of goods sold in the 20X5 consolidated income statement.
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What amount of income will be assigned to the noncontrolling shareholders in the 20X5 consolidated income statement?
What amount of income will be assigned to the controlling interest in the 20X5 consolidated income statement?
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