Question: Company S is 80 owned by Company P Near the
Company S is 80% owned by Company P. Near the end of 2011, Company S sold merchandise with a cost of $6,000 to Company P for $7,000. Company P sold the merchandise to a nonaffiliated firm in 2012 for $10,000. How much total profit should be recorded on the consolidated income statements in 2011 and 2012? How much profit should be awarded to the controlling and noncontrolling interests in2011and2012?
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