there were $100,000 of upstream intercompany profits in the parent's inventory. At the end of the current year, there were $150,000 of downstream intercompany profits in the subsidiary's inventory. During the current year, the subsidiary declared and paid $200,000 of dividends. The parent company uses the equity method of pre-consolidation investment bookkeeping. Each company reports the following income statement for the current year: Parent Subsidiary Income statement Sales Cost of goods sold Gross profe Income Cossirom subsidiary Operating expenses Nincome Compute the income (oss) from subsidiary of $103,750 reported by the parent company in its preconsolidation income statement Do not use negative signs with your answers below. Subedary's net income $325.000 AAP 62.000 Upstream 100 000 Adjusted subsidiary income 362.500 P% of interest 70 253.750 190.000 103.750 X Downstream sa income oss from subsidiary $10.000.000 $2.500.000 (6.000.000 (1.500.000) 3.200.000 1.000.000 103.750 Saves Cost of goods so Gross pr Operating expenses (1.800.000 1675.000 $1.503.750 $325.000 o. Prepare the consolidated income statement for the current year. Do not use negative signs with your answers below Consolidated Income Statement Net income Net income abutable to noncontrolling Net income abutable to the parent @ $11.000.000 6.850.000 4150.000 2.401.500 1.668.500 108.750 1.558.750 M ✓
there were $100,000 of upstream intercompany profits in the parent's inventory. At the end of the current year, there were $150,000 of downstream intercompany profits in the subsidiary's inventory. During the current year, the subsidiary declared and paid $200,000 of dividends. The parent company uses the equity method of pre-consolidation investment bookkeeping. Each company reports the following income statement for the current year: Parent Subsidiary Income statement Sales Cost of goods sold Gross profe Income Cossirom subsidiary Operating expenses Nincome Compute the income (oss) from subsidiary of $103,750 reported by the parent company in its preconsolidation income statement Do not use negative signs with your answers below. Subedary's net income $325.000 AAP 62.000 Upstream 100 000 Adjusted subsidiary income 362.500 P% of interest 70 253.750 190.000 103.750 X Downstream sa income oss from subsidiary $10.000.000 $2.500.000 (6.000.000 (1.500.000) 3.200.000 1.000.000 103.750 Saves Cost of goods so Gross pr Operating expenses (1.800.000 1675.000 $1.503.750 $325.000 o. Prepare the consolidated income statement for the current year. Do not use negative signs with your answers below Consolidated Income Statement Net income Net income abutable to noncontrolling Net income abutable to the parent @ $11.000.000 6.850.000 4150.000 2.401.500 1.668.500 108.750 1.558.750 M ✓
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter14: Intercorporate Investments In Common Stock
Section: Chapter Questions
Problem 20E
Related questions
Question
Need help withe the ones that are wrong plz
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 4 steps with 4 images
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
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning