Manama Co owns 75% of the outstanding common stock of Muscat Co. The book values and...

 

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Manama Co owns 75% of the outstanding common stock of Muscat Co. The book values and fair values of Muscat's assets and liabilities were equal. The cost of Manama's investment was equal to 75% of the book value of Muscat's net assets. Separate company income statements for Manama and Muscat for the year ended December 31, 2020 are summarized as follows: Sales Revenue Investment income from Muscat Cost of Goods Sold Expenses Net Income Manama $2,400,000 142.000 (1.600,000) (450.000) $492.000 Muscat $800,000 (400,000) (200.000) $200.000 Manama agreed to purchases its inventory from Muscat at a markup of 10% of cost. During 2020, Muscat sold 198,000 of inventory to Manama. Manama's beginning and ending inventories for 2020 were $110,000 and $88,000, respectively. Half of this merchandie remained in company's inventory at Isary and December 31, 2020, respectively Required: Prepare a cominlidated income statement for Manama Co and Subsidiary for 2020, Manama Co owns 75% of the outstanding common stock of Muscat Co. The book values and fair values of Muscat's assets and liabilities were equal. The cost of Manama's investment was equal to 75% of the book value of Muscat's net assets. Separate company income statements for Manama and Muscat for the year ended December 31, 2020 are summarized as follows: Sales Revenue Investment income from Muscat Cost of Goods Sold Expenses Net Income Manama $2,400,000 142.000 (1.600,000) (450.000) $492.000 Muscat $800,000 (400,000) (200.000) $200.000 Manama agreed to purchases its inventory from Muscat at a markup of 10% of cost. During 2020, Muscat sold 198,000 of inventory to Manama. Manama's beginning and ending inventories for 2020 were $110,000 and $88,000, respectively. Half of this merchandie remained in company's inventory at Isary and December 31, 2020, respectively Required: Prepare a cominlidated income statement for Manama Co and Subsidiary for 2020,

Answer rating: 100% (QA)

Consolidated Income Statement Manama Co and group for the year ended December 31 2020 Sales Cost of ... View the full answer