Description of this paper

prepare the necessary consolidated working paper eliminations for 2014

Description

solution


Question

Petersen owns 80% of Seavoss, acquired several years ago at a price equal to book value. Petersen and Seavoss sell merchandise to each other. For 2014, unconfirmed profits in inventories are as follows: Petersen: Beginning Inventory- $20,000 Ending Inventory- $25,000. Seavoss Beginning Inventory- $10,000 Ending Inventory- $8,000. Total upstream sales in 2014 were $400,000, downstream sales were $600,000. Seavoss? reported income for 2014 was 100,000;Required;a) prepare the necessary consolidated working paper eliminations for 2014;b) Calculate Petersen?s equity in Seavoss income for 2014, assuming the only intercompany eliminations are for merchandise sales.;c) Calculate noncontrolling interest in consolidated net income for 2014, assuming the only intercompany eliminations are for merchandise sales.

 

Paper#20882 | Written in 18-Jul-2015

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