Problem $5-14($Algo$)($LO $5-1,5-3,5-4,5-5,5-6,5-7)$

Placid Lake Corporation acquired $80$ percent of the outstanding voting stock of Scenic, Incorporated, on January $1,2023,$ when Scenic had a net book value of $$570,000.$ Any excess fair value was assigned to intangible assets and amortized at a rate of $$5,000$ per year.

Placid Lake's $2024$ net income before consideration of its relationship with Scenic $($and before adjustments for intra$-$entity sales$)$ was $$470,000.$ Scenic reported net income of $$280,000.$ Placid Lake declared $$160,000$ in dividends during this period; Scenic paid $$57,000.$ At the end of $2024,$ selected figures from the two companies' balance sheets were as follows:

Items $|$ Placid Lake$|$ Scenic

Inventory $|$ $$310,000|$ $$107,000$

Land $|$ $$770,000|$ $$370,000$

Equipment $($net $|$ $$70,000|$ $$470,000$

During $2023,$ intra$-$entity sales of $$160,000($original cost of $$76,000)$ were made. Only $20$ percent of this inventory was still held within the consolidated Entity at the end of $2023.$ In $2024,$ $$260,000$ in intra$-$entity sales were made with an original cost of $$76,000.$ Of this merchandise, $30$ percent had not been

resold to outside parties by the end of the year. Each of the following questions should be considered as an independent situation for the year $2024.$

Required:

a$.$ What is consolidated net income for Placid Lake and its subsidiary?

Consolidated net income

b$.$ If the intra$-$entity sales were upstream, how would consolidated net

income be allocated to the controlling and noncontrolling interest?

c$.$ If the intra$-$entity sales were downstream, how would consolidated net

income be allocated to the controlling and noncontrolling interest?

d$.$ What is the consolidated balance in the ending Inventory account?

e$.$ Assume that no intra$-$entity inventory sales occurred between Placid Lake

and Scenic. Instead, in $2023,$ Scenic sold land costing $$47,000$ to Placid

Lake for $$84,000.$ On the $2024$ consolidated balance sheet, what value

should be reported for land?

f$-1.$ Assume that no intra$-$entity inventory or land sales occurred

between Placid Lake and Scenic. Instead, on January $1,2023,$ Scenic

sold equipment $($that originally cost $$160,000$ but had a $$77,000$ book

value on that date$)$ to Placid Lake for $$104,000.$ At the time of sale, the

equipment had a remaining useful life of five years. What worksheet

entries are made for a December $31,2024,$ consolidation of these two

companies to eliminate the impact of the intra$-$entity transfer?

f$-2.$ Assume that no intra$-$entity inventory or land sales occurred

between Placid Lake and Scenic. Instead, on January $1,2023,$ Scenic

sold equipment $($that originally cost $$160,000$ but had a $$77,000$ book

value on that date$)$ to Placid Lake for $$104,000.$ At the time of sale, the

equipment had a remaining useful life of five years. For $2024,$ what is

the noncontrolling interest's share of Scenic's net income?