Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 2021, and ...
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Accounting
Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 2021, and
resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 2021, for P140,000.
Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser's voting common stock.
The companies had no other transactions during 2021.
1. What amount of sales will be reported in the 2021 consolidated income statement? C
2. What amount of cost of goods sold will be reported in the 2021 consolidated income statement?
3. What amount of consolidated net income will be assigned to the controlling interest for 2021?
4. What inventory balance will be provided by the consolidated entity on December 31, 2021?
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