Player Company acquired 70 percent ownership of Scout Company's voting shares on January 1, 20X2. During 20X5, Player purchased inventory for $25,000 and sold the full amount to Scout Company for $35,000. On December 31, 20X5, Scout's ending inventory included $7,000 of items purchased from Player. Also in 20X5, Scout purchased inventory for $50,000 and sold the units to Player for $80,000. Player included $20,000 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 Sales Income from Scout Scout Company $ 359,450 55,050 $ 414,500 $ 220,000 Cost of Goods Sold $242,000 $ 105,000 Other Expenses 67,000 26,000 Total Expenses $ (309,000) $ (131,000) Net Income $ 105,500 $ 89,000 Required: 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. Note: Do not round intermediate calculations. $ 220,000 What amount of income will be assigned to the noncontrolling shareholders in the 20X5 consolidated income statement? Note: Do not round intermediate calculations. What amount of income will be assigned to the controlling interest in the 20X5 consolidated income statement? Note: Do not round intermediate calculations.
Player Company acquired 70 percent ownership of Scout Company's voting shares on January 1, 20X2. During 20X5, Player purchased inventory for $25,000 and sold the full amount to Scout Company for $35,000. On December 31, 20X5, Scout's ending inventory included $7,000 of items purchased from Player. Also in 20X5, Scout purchased inventory for $50,000 and sold the units to Player for $80,000. Player included $20,000 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 Sales Income from Scout Scout Company $ 359,450 55,050 $ 414,500 $ 220,000 Cost of Goods Sold $242,000 $ 105,000 Other Expenses 67,000 26,000 Total Expenses $ (309,000) $ (131,000) Net Income $ 105,500 $ 89,000 Required: 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. Note: Do not round intermediate calculations. $ 220,000 What amount of income will be assigned to the noncontrolling shareholders in the 20X5 consolidated income statement? Note: Do not round intermediate calculations. What amount of income will be assigned to the controlling interest in the 20X5 consolidated income statement? Note: Do not round intermediate calculations.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 18E
Related questions
Question
Transcribed Image Text:Player Company acquired 70 percent ownership of Scout Company's voting shares on January 1, 20X2. During 20X5,
Player purchased inventory for $25,000 and sold the full amount to Scout Company for $35,000. On December 31, 20X5,
Scout's ending inventory included $7,000 of items purchased from Player. Also in 20X5, Scout purchased inventory for
$50,000 and sold the units to Player for $80,000. Player included $20,000 of its purchase from Scout in ending inventory
on December 31, 20X5. Summary income statement data for the two companies revealed the following:
Scout Company
$ 220,000
Sales
Income from Scout
Player Company
$ 359,450
55,050
$ 414,500
$ 242,000
67,000
$ 220,000
$ 105,000
Cost of Goods Sold
Other Expenses
Total Expenses
$ (309,000)
$ (131,000)
Net Income
$ 105,500
$ 89,000
Required: 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. Note: Do not round intermediate
calculations.
26,000
What amount of income will be assigned to the noncontrolling shareholders in the 20X5 consolidated income statement?
Note: Do not round intermediate calculations.
What amount of income will be assigned to the controlling interest in the 20X5 consolidated income statement? Note: Do
not round intermediate calculations.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning