Poole Company owns a 90% interest in Solumbra Company. The consolidated income statement drafted by the controller of Poole Company appeared as follows: Sales Cost of Sales Operating Expenses Consolidated Income Poole Company and Subsidiary Consolidated Income Statement For the Year Ended December 31, 2017 $9,000,000 1,800,000 2016 Sales Solumbra to Poole 2017 Sales-Poole to Solumbra 10,800,000 3,000,000 Less Noncontrolling Interest in Consolidated Income 190,000 Controlling Interest in Consolidated Net Income $2.810.000 During your audit you discover that intercompany sales transactions were not reflected in the controller's draft of the consolidated income statement. Information relating to intercompany sales and unrealized intercompany profit is as follows: $13,800,000 Cost $1,500,000 900,000 Unsold at Year-End Selling Price $1,800,000 1/4 1,350,000 2/5 Required: Prepare a corrected consolidated income statement for Poole Company and Solumbra Company for the year ended December 31, 2017.

Poole Company owns a 90% interest in Solumbra Company. The consolidated income statement drafted by the controller of Poole Company appeared as follows: Sales Cost of Sales Operating Expenses Consolidated Income Poole Company and Subsidiary Consolidated Income Statement For the Year Ended December 31, 2017 $9,000,000 1,800,000 2016 Sales Solumbra to Poole 2017 Sales-Poole to Solumbra 10,800,000 3,000,000 Less Noncontrolling Interest in Consolidated Income 190,000 Controlling Interest in Consolidated Net Income $2.810.000 During your audit you discover that intercompany sales transactions were not reflected in the controller's draft of the consolidated income statement. Information relating to intercompany sales and unrealized intercompany profit is as follows: $13,800,000 Cost $1,500,000 900,000 Unsold at Year-End Selling Price $1,800,000 1/4 1,350,000 2/5 Required: Prepare a corrected consolidated income statement for Poole Company and Solumbra Company for the year ended December 31, 2017.

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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