Items 1 through 4 are based on the following:
Selected information from the separate and consolidated balance sheets and income statements of Pard, Inc. and its subsidiary, Spin Co., as of December 31, 2006, and for the year then ended is as follows:
|
Pard |
Spin |
Consolidated |
||
|
Balance sheet accounts |
||||
|
Accounts receivable |
$ 26,000 |
$ 19,000 |
$ 39,000 |
|
|
Inventory |
30,000 |
25,000 |
52,000 |
|
|
Investment in Spin |
67,000 |
— |
— |
|
|
Goodwill |
— |
— |
30,000 |
|
|
Minority interest |
— |
— |
10,000 |
|
|
Stockholders’ equity |
154,000 |
50,000 |
154,000 |
|
|
Income statement accounts |
||||
|
Revenues |
$200,000 |
$140,000 |
$308,000 |
|
|
Cost of goods sold |
150,000 |
110,000 |
231,000 |
|
|
Gross profit |
50,000 |
30,000 |
77,000 |
|
|
Equity in earnings of Spin |
11,000 |
— |
— |
|
|
Net income |
36,000 |
20,000 |
40,000 |
|
Additional information
- During 2006, Pard sold goods to Spin at the same markup on cost that Pard uses for all sales. At December 31, 2006, Spin had not paid for all of these goods and still held 37.5% of them in inventory.
- Pard acquired its interest in Spin on January 2, 2005.
What was the amount of intercompany sales from Pard to Spin during 2006?
- $ 3,000
- $ 6,000
- $29,000
- $32,000
At December 31, 2006, what was the amount of Spin’s payable to Pard for intercompany sales?
- $ 3,000
- $ 6,000
- $29,000
- $32,000
In Pard’s consolidated balance sheet, what was the carrying amount of the inventory that Spin purchased from Pard?
- $ 3,000
- $ 6,000
- $ 9,000
- $12,000
What is the percent of minority interest ownership in Spin?
- 10%
- 20%
- 25%
- 45%