Pilfer Company acquired 90 percent ownership of Scrooge Corporation in 20X7, at underlying book value. On that date, the fair value of noncontrolling interest was equal to 10 percent of the book value of Scrooge Corporation. Pilfer purchased inventory from Scrooge for $90,000 on August 20, 20X8, and resold 70 percent of the inventory to unaffiliated companies on December 1, 20X8, for $100,000. Scrooge produced the inventory sold to Pilfer for $67,000. The companies had no other transactions during 20X8.

35) Based on the information given above, what amount of sales will be reported in the 20X8 consolidated income statement?

A) $90,000

B) $120,000

C) $100,000

D) $67,000

36) Based on the information given above, what amount of cost of goods sold will be reported in the 20X8 consolidated income statement?

A) $60,900

B) $90,000

C) $46,900

D) $67,000

37) Based on the information given above, what amount of consolidated net income will be assigned to the controlling interest for 20X8?

A) $51,490

B) $53,100

C) $37,000

D) $20,100

38) Based on the information given above, what inventory balance will be reported by the consolidated entity on December 31, 20X8?

A) $51,490

B) $53,100

C) $37,000

D) $20,100

Answer rating: 100% (QA)

35 As 70 of the goods that are sold are of the price 100000 so the amount of ... View the full answer