On January 1, 20X8, Parent Company acquired 90 percent ownership of Subsidiary Corporation, at underlying book value. The fair value of the noncontrolling interest at the date of acquisition was equal to 10 percent of the book value of Subsidiary Corporation. On Mar 17, 20X8, Subsidiary purchased inventory from Parent for $90,000. Subsidiary sold the entire inventory to an unaffiliated company for $120,000 on November 21, 20X8. Parent had produced the inventory sold to Subsidiary for $62,000. The companies had no other transactions during 20X8.
1. Based on the information given above, what amount of sales will be reported in the 20X8 consolidated income statement?
a. $62,000
b. $120,000
c. $90,000
d. $58,000
2. Based on the information given above, what amount of cost of goods sold will be reported in the 20X8 consolidated income statement?
a. $62,000
b. $120,000
c. $90,000
d. $58,000
3. Based on the information given above, what amount of consolidated net income will be assigned to the controlling shareholders for 20X8?
a. $58,000
b. $59,000
c. $55,000
d. $52,200