Empire Optical Co Ltd is a chain of eyeglass outlets
Empire Optical Co., Ltd. is a chain of eyeglass outlets. Empire owns 100% of Class Glass Ltd., a competing chain that Empire established to serve a different market segment. To obtain the best deal from suppliers, Empire buys most of the materials and frames for both chains, and resells to Class whatever that chain needs.
During 20X6, Empire sold materials costing $ 2,000,000 to Class at cost. At the end of the year, Class still owed Empire $ 250,000 for purchases of the materials.
Empire records its investment in Class on the equity basis. During 20X6, Class declared and paid dividends totaling $ 200,000. Empire has not yet recorded its equity in the earn-ings of Class for 20X6. The pre- consolidation trial balances for the two companies are shown below. An Excel spreadsheet relating to this problem appears on the Companion Website.

Required
Prepare a consolidated SFP and SCI for Empire Optical Co., Ltd. for20X6.
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help