Player Company acquired 70 percent ownership of Scout Company's voting shares on January 1, 20X2. Du purchased Inventory for $23,000 and sold the full amount to Scout Company for $33,000. On December 31 nventory Included $6,600 of Items purchased from Player. Also in 20X5, Scout purchased Inventory for $50 Player for $80,000. Player Included $20,000 of its purchase from Scout in ending Inventory on December 3 Summary Income statement data for the two companies revealed the following: Sales Income from Scout Cost of Goods Sold Other Expenses Total Expenses Net Income Required: Player Company $ 354,450 48,050 $ 482,500 $ 230,000 69,000 $ (299,000) $ 103,500 Scout Company $ 210,000 $ 210,000 $ 101,000 30,000 $ (131,000) $ 79,000
Player Company acquired 70 percent ownership of Scout Company's voting shares on January 1, 20X2. Du purchased Inventory for $23,000 and sold the full amount to Scout Company for $33,000. On December 31 nventory Included $6,600 of Items purchased from Player. Also in 20X5, Scout purchased Inventory for $50 Player for $80,000. Player Included $20,000 of its purchase from Scout in ending Inventory on December 3 Summary Income statement data for the two companies revealed the following: Sales Income from Scout Cost of Goods Sold Other Expenses Total Expenses Net Income Required: Player Company $ 354,450 48,050 $ 482,500 $ 230,000 69,000 $ (299,000) $ 103,500 Scout Company $ 210,000 $ 210,000 $ 101,000 30,000 $ (131,000) $ 79,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
shobha
Transcribed Image Text:Player Company acquired 70 percent ownership of Scout Company's voting shares on January 1, 20X2. During 20X5, Player
purchased Inventory for $23,000 and sold the full amount to Scout Company for $33,000. On December 31, 20X5. Scout's ending
Inventory Included $6.600 of Items purchased from Player. Also in 20X5, Scout purchased Inventory for $50,000 and sold the units to
Player for $80,000. Player Included $20,000 of Its purchase from Scout in ending Inventory on December 31, 20X5.
Summary Income statement data for the two companies revealed the following:
Sales
Income from Scout
Cost of Goods Sold
Other Expenses
Total Expenses
Net Income
Consolidated sales
Required:
a. Compute the amount to be reported as sales in the 20X5 consolidated Income statement.
Consolidated COGS
Player Company
$ 354,450
48,050
$ 482,500
$ 230,000
69,000
$ (299,000)
$ 103,500
Scout Company
$ 210,000
b. Compute the amount to be reported as cost of goods sold in the 20X5 consolidated Income statement.
Note: Do not round Intermediate calculations.
Income to NCI
$ 210,000
$ 101,000
30,000
$ (131,000)
$ 79,000
c. What amount of Income will be assigned to the noncontrolling shareholders in the 20X5 consolidated Income statement?
Note: Do not round Intermediate calculations.
Income to controlling interest
d. What amount of Income will be assigned to the controlling Interest in the 20X5 consolidated Income statement?
Note: Do not round Intermediate calculations.
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 3 steps
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
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education