Computations (upstream sales)
Put Corporation acquired a 90 percent interest in Sam Corporation at book value on January 1, 2011. Intercompany purchases and sales and inventory data for 2011, 2012, and 2013, are as follows:
|
Sales by Sam to Put |
Intercompany Profit in Put’s Inventory at December 31 |
|
|
2011 |
$200,000 |
$15,000 |
|
2012 |
150,000 |
12,000 |
|
2013 |
300,000 |
24,000 |
Selected data from the financial statements of Put and Sam at and for the year ended December 31, 2013, are as follows:
|
Put |
Sam |
|
|
Income Statement |
||
|
Sales |
$900,000 |
$600,000 |
|
Cost of sales |
625,000 |
300,000 |
|
Expenses |
225,000 |
150,000 |
|
Income from Sam |
124,200 |
— |
|
Balance Sheet |
||
|
Inventory |
$150,000 |
$ 80,000 |
|
Retained earnings December 31, 2013 |
425,000 |
220,000 |
|
Capital stock |
500,000 |
300,000 |
Required: Prepare well organized schedules showing computations for each of the following:
1. Consolidated cost of sales for 2013
2. Noncontrolling interest share for 2013
3. Consolidated net income for 2013
4. Noncontrolling interest at December 31, 2013