I am searching for the correct answer to this general accounting problem with proper accounting rules. A parent's beginning inventory contains $12,000 inunconfirmed profits on goods purchased from itssubsidiary. The subsidiary's beginning inventory contains$6,000 in unconfirmed profits on goods purchased fromits parent. The parent owns 75% of the subsidiary.By what amount is consolidated net income to thecontrolling interest increased by the confirmation ofprofits on beginning inventories?

Step 1: Define Unconfirmed Profits in Beginning InventoriesUnconfirmed profits in beginning…

Answered: A parent's beginning inventory contains…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A parent company regularly sells merchandise to its 80%-owned subsidiary. Which of the following statements describes the computation of non-controlling interest income? a. (The subsidiary’s net income + unrealized profits in the ending inventory – unrealized profits in the beginning inventory) x 20% b. The subsidiary’s net income times 20% c. The subsidiary’s net income x 20%) + unrealized profits in the beginning inventory- unrealized profits in the ending inventory d. The subsidiary’s net income + unrealized profits in the beginning inventory – unrealized profits in the ending inventory) x 20%
A parent company regularly sells merchandise to its 70%-owned subsidiary. Which of the following statements describes the computation of noncontrolling interest share? A. (The subsidiary's net income × 30%) + unrealized profits in the beginning inventory - unrealized profits in the ending inventory B. (The subsidiary's net income + unrealized profits in the ending inventory - unrealized profits in the beginning inventory) × 30% C. (The subsidiary's net income + unrealized profits in the beginning inventory - unrealized profits in the ending inventory) × 30% D. The subsidiary's net income times 30%
In 2020, parent reports Cost of Goods Sold of $4,000,000. Its 90% owned subsidiary reports Cost of Goods Sold of $1,000,000 in 2020. During 2019 the subsidiary had $60,000 of unrealized gains on intercompany sales to its parent. By the end of 2020, all inventory subject to the intercompany transfer has been sold to third parties. In 2020, the subsidiary had sold $200,000 of goods to its parent and had $30,000 of unrealized gains. How much is consolidated cost of goods sold in 2020.
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K Company owns 100% of E Company. During the year, Kianapurchased inventory from Elyssa at a mark-up of 20% based on cost.How should the group compute for consolidated cost of sales?a. Cost of Sales of K + Cost of Sales of E– intercompany sales + Realized profit in beginning inventory – Unrealized profit in ending inventory.b. Cost of Sales of K + Cost of Sales of E – intercompany sales – Realized profit in beginning inventory + Unrealized profit in ending inventory.c. Cost of Sales of Kiana + Cost of Sales of Elyssa – Intercompany sales d. Cost of Sales of K + Cost of Sales of E
69. A parent owns 80% of its subsidiary, and sells merchandise to its subsidiary at a 25% markup on cost. The subsidiary's ending inventory includes $750,000 purchased from the parent. The subsidiary's beginning inventory includes $825,000 purchased from the parent. What is the effect of the above on the parent's equity in net income of the subsidiary for the current year? a. P15,000 increase b. 70 Yukon C. P15,000 decrease d. no effect rod 75% porcent of the voting common stock of Ontario Corn on January 1 P12,000 increase
1. What is the Consolidated Net Income for 2020? 2. What is the Consolidated Net Income for 2021?
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Determine the net income attributable to P Corporation using the information below:
Determine the net income attributable to P Corporation.
During 20x9, PP Corporation recorded sales of inventory costing P500,0000 to SS Company, its wholly owned subsidiary, on the same terms as sales made to third parties. At December 31,20x9, SS held one-fifth of this goods inventory. The following information pertains to PP and SS’s sales for 20x9: (see image below) In its 20x9 consolidated income statement, what amount should PP report as cost of sales?
A.Selected information from the separate and consolidated income statements of CHARTER LTD. and as subsidiary, MEMBER INC. for the year ended December 31, 2021 are as follows: |CHARTER LTD. P600,000 Consolidated P924,000 693,000 MEMBER INC. Sales P420,000 330,000 P 90,000 COGS 450,000 | Gross profit P150,000 P231,000 During 2021, CHARTER LTD. sold goods to MEMBER INC. at the same mark-up on cost that CHARTER LTD. uses for all sales. At December 31, 2021, MEMBER INC. had not paid all of these goods and still held 37.5% of them in inventory. Compute for the original cost of goods in MEMBER INC.'s inventory acquired from Apple.

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