Pilfer Company acquired 90 percent ownership of Scrooge Corporation in 20X7, at underlying book value. On that date, the fair value of non-controlling 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 re-sold 70 percent of the inventory to un-affiliated 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.
1) Based on the information, 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.
2) Based on the information, 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.
3) Based on the information, 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.
4) Based on the information, 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.