Akron, Inc., owns all outstanding stock of Toledo Corporation. Amortization expense of $15,000 per year for patented technology resulted from the original acquisition. For 2021, the companies had the following account balances: Akron Toledo Sales $ 1,100,000 $ 600,000 Cost of goods sold 500,000 400,000 Operating expenses 400,000 220,000 Investment income Not given 0 Dividends declared 80,000 30,000 Intra-entity sales of $320,000 occurred during 2020 and again in 2021. This merchandise cost $240,000 each year. Of the total transfers, $70,000 was still held on December 31, 2020, with $50,000 unsold on December 31, 2021. Prepare a consolidated income statement for the year ending December 31, 2021.
Akron, Inc., owns all outstanding stock of Toledo Corporation. Amortization expense of $15,000 per year for patented technology resulted from the original acquisition. For 2021, the companies had the following account balances: Akron Toledo Sales $ 1,100,000 $ 600,000 Cost of goods sold 500,000 400,000 Operating expenses 400,000 220,000 Investment income Not given 0 Dividends declared 80,000 30,000 Intra-entity sales of $320,000 occurred during 2020 and again in 2021. This merchandise cost $240,000 each year. Of the total transfers, $70,000 was still held on December 31, 2020, with $50,000 unsold on December 31, 2021. Prepare a consolidated income statement for the year ending December 31, 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Akron, Inc., owns all outstanding stock of Toledo Corporation. Amortization expense of $15,000 per year for patented technology resulted from the original acquisition. For 2021, the companies had the following account balances:
| Akron | Toledo | |||||
| Sales | $ | 1,100,000 | $ | 600,000 | ||
| Cost of goods sold | 500,000 | 400,000 | ||||
| Operating expenses | 400,000 | 220,000 | ||||
| Investment income | Not given | 0 | ||||
| Dividends declared | 80,000 | 30,000 | ||||
Intra-entity sales of $320,000 occurred during 2020 and again in 2021. This merchandise cost $240,000 each year. Of the total transfers, $70,000 was still held on December 31, 2020, with $50,000 unsold on December 31, 2021.
- Prepare a consolidated income statement for the year ending December 31, 2021.
![**Transcription of Income Statement Template**
**Task Prompt:**
Complete this question by entering your answers in the tabs below.
**Tabs:**
- Required A
- Required B
**Instruction:**
Prepare a consolidated income statement for the year ending December 31, 2021.
**Table:**
**AKRON, INC. AND CONSOLIDATED SUBSIDIARY**
**Income Statement**
- *Year Ending December 31, 2021*
| | |
|------|------|
| | |
| | |
| | $0 |
| | |
| | $0 |
**Navigation:**
- [< Required A]
- [Required B >]
This template is intended for students to input financial data and practice preparing a consolidated income statement. The layout includes placeholders for various financial line items and a summary total at the bottom. The given task requires students to analyze financial data and complete the table accordingly.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5bd24d5e-ed33-4881-8643-64f182425bac%2Fb2de3ab3-7a04-4f49-b031-9c28c5a1a767%2Frztbtwd_processed.png&w=3840&q=75)
Transcribed Image Text:**Transcription of Income Statement Template**
**Task Prompt:**
Complete this question by entering your answers in the tabs below.
**Tabs:**
- Required A
- Required B
**Instruction:**
Prepare a consolidated income statement for the year ending December 31, 2021.
**Table:**
**AKRON, INC. AND CONSOLIDATED SUBSIDIARY**
**Income Statement**
- *Year Ending December 31, 2021*
| | |
|------|------|
| | |
| | |
| | $0 |
| | |
| | $0 |
**Navigation:**
- [< Required A]
- [Required B >]
This template is intended for students to input financial data and practice preparing a consolidated income statement. The layout includes placeholders for various financial line items and a summary total at the bottom. The given task requires students to analyze financial data and complete the table accordingly.
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