The following nominal accounts apply to a primary beneficiary company and a VIE:

The fair value of the VIE assets had a fair value $100,000 higher than book value on the date control was achieved. The asset adjusted had a 5 year life.
The VIE agrees to distribute a share of its income to the primary beneficiary equal to 10% of sales revenue and service fees.
Prepare income distribution schedules for the Primary and VIE Companies?

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Primary CompanyVIE Company Sales (150,000] 50,000 230,000 40,000 Operating expenses 550,000