Parent Corporation acquired 80 percent of the outstanding voting stock of Sub, Inc., on January 1, 2021, when Sub had a net book value of $500,000. Any excess fair value was assigned to patents and amortized at a rate of $10,000 per year for eight years. 2022 net income and dividends for the parent before consideration of its relationship with Sub (and before adjustments for intra-entity sales) and for the sub are below: Net Income Parent $500,000 Sub $150,000 (Parent NI excludes income from sub) Dividends 60,000 20,000 Inventory balances from the two companies' 12/31/2022 balance sheets were as follows: Account Title Inventory Parent $185,000 Sub $95,000 Intra-Entity Sales: • 2021: Intra-entity sales of $125,000 with an original cost of $47,500 were made. 50% of this inventory was held by the consolidated company as of 12/31/2021. 2022: Intra-entity sales of $100,000 with an original cost of $35,000 were made. 25% of this inventory was held by the consolidated company as of 12/31/2022. Assume that no intra-entity inventory or land sales occurred between Parent and Sub. Instead, on January 1, 2021, Sub sold equipment to Parent for $71,000 cash. The equipment's original cost to Sub was $95,000 and the book value was $65,000 on date of sale. At the time of sale, the equipment had a remaining useful life of five years. i. Entry TA Prepare the worksheet entries for a December 31, 2021, consolidation of these two companies to eliminate the impact of the intra-entity transfer. Account Title Debit Credit ED ii. How much of the gain on sale of equipment has been recognized by the consolidated entity as of 12/31/2022? $ iii. Determine the noncontrolling interest's share of Sub's net income for the year ended 12/31/2021. $

Intor Company acquired 20% of the ordinary shares of Intee Company on January 1, 2019. At this date, all the identifiable assets and liabilities of Intee were recorded at fair value. An analysis of the acquisition showed that P200,000 of goodwill was acquired. Intee Company recorded a profit of P1,000,000 for 2020 and paid dividend of P700,000 during the same year. The following transactions have occurred between the two entities. • In December 2020, Intee sold inventory to Intor for P1,500,000. This inventory had previously cost Intee P1,000,000 and remains unsold by Intor on December 31. 2020. • In November 2020, Intor sold inventory to Intee at a before tax profit of P300.000. Half of this was sold by Intee before December 31, 2020. • In December 2019, Intee sold inventory to Intor for P1,800,000. This inventory had cost Intee P1,200,000. At December 31. 2019, this inventory remained unsold by Intor. However, it was all sold by Intor in 2020. Ignoring income tax, Intor company…

Intor Company acquired 20% of the ordinary shares of Intee Company on January 1, 2019. At this date, all the identifiable assets and liabilities of Intee were recorded at fair value. An analysis of the acquisition showed that P200,000 of goodwill was acquired. Intee Company recorded a profit of P1,000,000 for 2020 and paid dividend of P700,000 during the same year. The following transactions have occurred between the two entities. • In December 2020, Intee sold inventory to Intor for P1,500,000. This inventory had previously cost Intee P1,000,000 and remains unsold by Intor on December 31, 2020. • In November 2020, Intor sold inventory to Intee at a before tax profit of P300,000. Half of this was sold by Intee before December 31, 2020. • In December 2019, Intee sold inventory to Intor for P1,800,000. This inventory had cost Intee P1,200,000. At December 31, 2019, this inventory remained unsold by Intor. However, it was all sold by Intor in 2020. Ignoring income tax, Intor company shall…

On 1 July 2021, King Ltd acquired all the share capital of Queen Ltd for $1,800,000, and on that date Queen Ltd.'s equity were as follows: Share capital $1,200,000; Revaluation surplus $500,000 and Retained earnings $200,000. All the assets and liabilities of Queen Ltd. were recorded at fair value on 1 July 2021. During the financial year 2022, the following intragroup transactions occurred between King Ltd and Queen Ltd: Queen Ltd sold land to King Ltd for $400,000, which was $100,000 above cost. The land was still hold by King Ltd. King Ltd sold an equipment to Queen Ltd for $400,000. The carrying amount of equipment to King Ltd of $320,000. Both entities depreciate equipment at a rate of 10% p.a. on cost. Queen Ltd sold inventories costing $160,000 to King Ltd for $180,000. 1/4th of the inventories were still on hand with King Ltd. King Ltd received $15,000 of service revenue from Queen Ltd. Queen Ltd paid dividend of $30,000 and interest on loan of $8,000 to King Ltd. The tax rate…