Block Corporation was created on January 1, 20X0, to develop computer software. On January 1, 20X5, Foster Company purchased 90 percent of Block’s common stock at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 10 percent of Block’s book value. Trial balances for Foster and Block on December 31, 20X9, are as follows:

During 20X9, Block produced inventory for $20,000 and sold it to Foster for $30,000. Foster resold 60 percent of the inventory in 20X9. Also in 20X9, Foster sold inventory purchased from Block in 20X8. It had cost Block $60,000 to produce the inventory, and Foster purchased it for $75,000. Assume Foster uses the fully adjusted equity method.

Required
a. What amount of cost of goods sold will be reported in the 20X9 consolidated income statement?
b. What inventory balance will be reported in the December 31, 20X9, consolidated balance sheet?
c. What amount of income will be assigned to noncontrolling shareholders in the 20X9 consolidated income statement?
d. What amount will be assigned to noncontrolling interest in the consolidated balance sheet prepared at December 31, 20X9?
e. What amount of retained earnings will be reported in the consolidated balance sheet at December 31, 20X9?
f. Give all elimination entries required to prepare a three-part consolidation worksheet at December 31, 20X9.
g. Prepare a three-part consolidation worksheet at December 31,20X9.

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20X9 Trial Balance Data Foster Company Debit Block Corporation Debit Item Credit Credit 57,400 90,000 10,000 130,000 60,000 250,000 Cash Accounts Receivable Other Receivables Inventory Land Buildings & Equipment Investment in Block Corporation Stock Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Other Payables Bonds Payable Bond Premium Common Stock Additional Paid-in Capital Retained Earnings S 187,000 80,000 40,000 137,000 80,000 500,000 234,900 593,000 45,000 95,000 40,000 270,000 15,000 75,000 20,000 155,000 63,000 95,000 250,000 S 75,000 35,000 20,000 200,000 2,400 50,000 210,000 110,000 235,000 815,000 26,000 72,900 165,000 415,000 15,000 Other Income Income from Subsidiary 2,031,900 2,031,900 $977,400 977,400