On January 1, 2013 Pop purchased 70% of the common stock of Sed for $400,000 when Sed had common stock outstanding of 100,000 and retained earnings of 200,000, any excess was assigned to goodwill. At the end of 2013 Pop and Sed had unrealized inventory profits in their ending inventories left from intracompany sales of 7,000 and 9,000 respectively. These year end profit amounts were realized in 2014. At the end of 2014 Pop held inventory acquired from Sed with a $10,000 unrealized profit. Pop reported income of $100,000 for 2014 and paid dividends of $30,000. Sed reported income of 70,000 for 2014 and paid dividends of $20,000.

Compute consolidated net income for 2014??

Answer rating: 100% (QA)

Answer Pop Sed Total Year 2014 Reported income 100000 7... View the full answer