Business, 07.05.2021 15:50 alejandra340

Potter Company acquired 75 percent ownership of Snape Corporation in 20X5, at underlying book value. On that date, the fair value of the noncontrolling interest was equal to 25 percent of the book value of Snape Corporation. Potter purchased inventory from Snape for $150,000 on July 24, 20X6, and resold 90 percent of the inventory to unaffiliated companies on November 11, 20X6, for $160,000. Snape produced the inventory sold to Potter for $120,000. The companies had no other transactions during 20X6. a) Based on the information given above, what amount of sales will be reported in the 20X6 consolidated income statement?
b) Based on the information given above, what amount of cost of goods sold will be reported in the 20X6 consolidated income statement?
c) Based on the information given above, what amount of consolidated net income will be assigned to the controlling interest for 20X6?

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Potter Company acquired 75 percent ownership of Snape Corporation in 20X5, at underlying book value....

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