Pop Corporation acquired a 90 percent interest in Son Corporation at book value on January 1, 2016. Intercompany purchases and sales and inventory data for 2016, 2017, and 2018, are as follows: Sales by Son to Pop Intercompany Profit in Pop’s Inventory at December 31 2016 $200,000 $15,000 2017 150,000 12,000 2018 300,000 24,000 Selected data from the financial statements of Pop and Son at and for the year ended December 31, 2018, are as follows: Pop Son Income Statement Sales $900,000 $600,000 Cost of sales 625,000 300,000 Expenses 225,000 150,000 Income from Son 124,200 — Balance Sheet Inventory $150,000 $ 80,000 Retained earnings December 31, 2018 425,000 220,000 Capital stock 500,000 300,000 Required Prepare well-organized schedules showing computations for each of the following: Consolidated cost of sales for 2018 Noncontrolling interest share for 2018 Consolidated net income for 2018 Noncontrolling interest at December 31, 2018
Pop Corporation acquired a 90 percent interest in Son Corporation at book value on January 1, 2016. Intercompany purchases and sales and inventory data for 2016, 2017, and 2018, are as follows:
Sales by Son to Pop
Intercompany Profit in Pop’s Inventory at December 31
2016
$200,000
$15,000
2017
150,000
12,000
2018
300,000
24,000
Selected data from the financial statements of Pop and Son at and for the year ended December 31, 2018, are as follows:
Pop
Son
Income Statement
Sales
$900,000
$600,000
Cost of sales
625,000
300,000
Expenses
225,000
150,000
Income from Son
124,200
—
Balance Sheet
Inventory
$150,000
$ 80,000
425,000
220,000
Capital stock
500,000
300,000
Required
Prepare well-organized schedules showing computations for each of the following:
Consolidated cost of sales for 2018
Noncontrolling interest share for 2018
Consolidated net income for 2018
Noncontrolling interest at December 31, 2018
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