Player Company acquired 60 percent ownership of Scout Company's voting shares on January 1, 20X2. During...

  

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Player Company acquired 60 percent ownership of Scout Company's voting shares on January 1, 20X2. During 20X5, Player purchased inventory for $22,000 and sold the full amount to Scout Company for $32,000. On December 31, 20X5, Scout's ending inventory included $6,400 of items purchased from Player. Also in 20X5, Scout purchased inventory for $52,000 and sold the units to Player for $82,000. Player included $20,500 of its purchase from Scout in ending inventory on December 31, 20X5. Summary income statement data for the two companies revealed the following: Sales Income from Scout Cost of Goods Sold Other Expenses Total Expenses Net Income Required: Player Company $ 364,000 38,500 Scout Company $ 402,500 $ 240,000 58,000 $ (298,000) $ 104,500 $ 220,000 $220,000 $ 111,000 34,000 $ (145,000) $ 75,000 a. Compute the amount to be reported as sales in the 20X5 consolidated income statement. Consolidated sales b. Compute the amount to be reported as cost of goods sold in the 20X5 consolidated income statement. Note: Do not round intermediate calculations. Consolidated COGS c. What amount of income will be assigned to the noncontrolling shareholders in the 20X5 consolidated income statement? Note: Do not round intermediate calculations. Income to NCI d. What amount of income will be assigned to the controlling interest in the 20X5 consolidated income statement? Note: Do not round intermediate calculations. Income to controlling interest Player Company acquired 60 percent ownership of Scout Company's voting shares on January 1, 20X2. During 20X5, Player purchased inventory for $22,000 and sold the full amount to Scout Company for $32,000. On December 31, 20X5, Scout's ending inventory included $6,400 of items purchased from Player. Also in 20X5, Scout purchased inventory for $52,000 and sold the units to Player for $82,000. Player included $20,500 of its purchase from Scout in ending inventory on December 31, 20X5. Summary income statement data for the two companies revealed the following: Sales Income from Scout Cost of Goods Sold Other Expenses Total Expenses Net Income Required: Player Company $ 364,000 38,500 Scout Company $ 402,500 $ 240,000 58,000 $ (298,000) $ 104,500 $ 220,000 $220,000 $ 111,000 34,000 $ (145,000) $ 75,000 a. Compute the amount to be reported as sales in the 20X5 consolidated income statement. Consolidated sales b. Compute the amount to be reported as cost of goods sold in the 20X5 consolidated income statement. Note: Do not round intermediate calculations. Consolidated COGS c. What amount of income will be assigned to the noncontrolling shareholders in the 20X5 consolidated income statement? Note: Do not round intermediate calculations. Income to NCI d. What amount of income will be assigned to the controlling interest in the 20X5 consolidated income statement? Note: Do not round intermediate calculations. Income to controlling interest

Answer rating: 100% (QA)

To calculate the consolidated sales cost of goods sold income to noncontrolling interest NCI and inc... View the full answer