If company A acquired 70% of company B on 1/1/16. During 2016 company A made several inventory sales to company B. The cost of goods was $160,000 and sales price of the goods was $250,000. Company B still owned one-third of the inventory at the end of 2016. Consolidated cost of goods sold for 2016 was $3,250,000 due to consolidating adjustments for intra-entity transfers less than intra-entity gross profitin company B ending inventory. How does the consolidated cost of goods sold differ if the inventory transfers had been the same amount and cost for upstream and downstrem? How does the net income attributable to the noncontrolling interest be different in the transfers had been the same amount and cost for upstream and downstream? How does upstream and downstream work?
If company A acquired 70% of company B on 1/1/16. During 2016 company A made several inventory sales to company B. The cost of goods was $160,000 and sales price of the goods was $250,000. Company B still owned one-third of the inventory at the end of 2016. Consolidated cost of goods sold for 2016 was $3,250,000 due to consolidating adjustments for intra-entity transfers less than intra-entity gross profitin company B ending inventory.
How does the consolidated cost of goods sold differ if the inventory transfers had been the same amount and cost for upstream and downstrem?
How does the net income attributable to the noncontrolling interest be different in the transfers had been the same amount and cost for upstream and downstream?
How does upstream and downstream work?
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