Sales Cost of Sales Operating Expense Consolidated Income seaton Company. The consolidated income statement drafted by the controller of Peat Company appeared as follows: Peat Company and Subsidiary Consolidated Income Statement for Year Ended December 31, 2015 Less Noncontrolling Interest in Consolidated Income Controlling Interest in Consolidated Net Income 2014 Sales-Seaton to Peat 2015 Sales-Peat to Seaton 9,256,700 Cost $1.488.300 905.000 1,802,200 During your audit you discover that intercompany sales transactions were not reflected in the controller's draft of the consolidated income statement. Information relating to intercompany sales and unrealized intercompany profit is as follows: Selling Price $1,789,500 1.398,500 $14,013,700 1/3 11,058,900 2/5 2.954,800 195,480 $2,759,320 Unsold at Year-End Prepare a corrected consolidated income statement for Peat Company and Seaton Company for the year ended December 31, 2015 PEAT COMPANY AND SUBSIDIARY Consolidated Income Statement

Sales Cost of Sales Operating Expense Consolidated Income seaton Company. The consolidated income statement drafted by the controller of Peat Company appeared as follows: Peat Company and Subsidiary Consolidated Income Statement for Year Ended December 31, 2015 Less Noncontrolling Interest in Consolidated Income Controlling Interest in Consolidated Net Income 2014 Sales-Seaton to Peat 2015 Sales-Peat to Seaton 9,256,700 Cost $1.488.300 905.000 1,802,200 During your audit you discover that intercompany sales transactions were not reflected in the controller's draft of the consolidated income statement. Information relating to intercompany sales and unrealized intercompany profit is as follows: Selling Price $1,789,500 1.398,500 $14,013,700 1/3 11,058,900 2/5 2.954,800 195,480 $2,759,320 Unsold at Year-End Prepare a corrected consolidated income statement for Peat Company and Seaton Company for the year ended December 31, 2015 PEAT COMPANY AND SUBSIDIARY Consolidated Income Statement

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 29E

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Up and its 80 percent–owned subsidiary (Down) reported the following figures for the year ending December 31, 2018. Down paid dividends of $30,000 during this period.In 2017, intra-entity gross profits of $30,000 on upstream transfers of $90,000 were deferred into 2018. In 2018, intra-entity gross profits of $40,000 on upstream transfers of $110,000 were deferred into 2019.a. What amounts appear for each line in a consolidated income statement? Explain your computations.b. What income tax expense should appear on the consolidated income statement if each company files a separate return? Assume that the tax rate is 30 percent.
Nasty is a wholly owned subsidiary of Ugly. Inventories in their individual statements of financial position at the year end are shown as: Ugly $40,000 Nasty $20,000 Sales by Ugly to Nasty during the year were invoiced at $15,000 which included a profit by Ugly of 25% on cost. Two thirds of these goods were included in inventories at the year end. At what value should inventories appear in the consolidated statement of financial position?
The consolidated income statement of P Corp. and its 80% subsidiary follows: P. Corp and Subsidiary Consolidated Income Statement For the year ended December 31, 2013 Sales P402,000 Cost of Goods Sold 246,000 Gross Profit 156,000 Operating expenses 81,000 Consolidated net income 75,000 Non-controlling interest in net income 6,000 Share of P. Corp. in the consolidated net income P69,000 How much of the consolidated net income was the result of the operation of the subsidiary? A. P51,000 B. P24,000 C. P7,500 D. P30,000
Up and its 80 percent–owned subsidiary (Down) reported the following figures for the year ending December 31, 2018. Down paid dividends of $30,000 during this period. UP DOWN Sales $(600000) $(300000) Cost of goods sold 300000 140000 Operating expenses 174000 60000 Dividend Income (24000) -0- Net income $(150000) $(100000) In 2017, intra-entity gross profits of $30,000 on upstream transfers of $90,000 were deferred into 2018. In 2018, intra-entity gross profits of $40,000 on upstream transfers of $110,000 were deferred into 2019.a. What amounts appear for each line in a consolidated income statement? Explain your computations.b. What income tax expense should appear on the consolidated income statement if each company files a separate return? Assume that the tax rate is 30 percent.
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Mire Company acquired a 70% interest in the Tyre Company in 2013. For the years ended December 31, 2014 and 2015.Tyre reported net income of $80,000 and $90,000 respectively. During 2014, Tyre sold merchandise to Mire for $10,000 at the profit of $2,000. The merchandise was later resold by Mire to outsiders for $15,000 during 2015. For consolidation purposes, what is the minority interest's share of Tyre's net income for 2014 and 2015, respectively? A. $23,400 and $27,600 B. $24,000 AND $27,000 C.$24,600 and $26,400 D. $26,000 and $25,000
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