On January 1, 2018, Sledge had common stock of $160,000 andretained earnings of $300,000....

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Accounting

On January 1, 2018, Sledge had common stock of $160,000 andretained earnings of $300,000. During that year, Sledge reportedsales of $170,000, cost of goods sold of $90,000, and operatingexpenses of $44,000.
On January 1, 2016, Percy, Inc., acquired 70 percent of Sledge'soutstanding voting stock. At that date, $64,000 of theacquisition-date fair value was assigned to unrecorded contracts(with a 20-year life) and $24,000 to an undervalued building (witha 10-year remaining life).
In 2017, Sledge sold inventory costing $10,450 to Percy for$19,000. Of this merchandise, Percy continued to hold $9,000 atyear-end. During 2018, Sledge transferred inventory costing $14,400to Percy for $24,000. Percy still held half of these items atyear-end.
On January 1, 2017, Percy sold equipment to Sledge for $14,000.This asset originally cost $20,000 but had a January 1, 2017, bookvalue of $9,800. At the time of transfer, the equipment's remaininglife was estimated to be five years.
Percy has properly applied the equity method to the investmentin Sledge.
Prepare worksheet entries to consolidate these two companies asof December 31, 2018.
Compute the net income attributable to the noncontrollinginterest for 2018.

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In: AccountingOn January 1, 2018, Sledge had common stock of $160,000 andretained earnings of $300,000. During...On January 1, 2018, Sledge had common stock of $160,000 andretained earnings of $300,000. During that year, Sledge reportedsales of $170,000, cost of goods sold of $90,000, and operatingexpenses of $44,000.On January 1, 2016, Percy, Inc., acquired 70 percent of Sledge'soutstanding voting stock. At that date, $64,000 of theacquisition-date fair value was assigned to unrecorded contracts(with a 20-year life) and $24,000 to an undervalued building (witha 10-year remaining life).In 2017, Sledge sold inventory costing $10,450 to Percy for$19,000. Of this merchandise, Percy continued to hold $9,000 atyear-end. During 2018, Sledge transferred inventory costing $14,400to Percy for $24,000. Percy still held half of these items atyear-end.On January 1, 2017, Percy sold equipment to Sledge for $14,000.This asset originally cost $20,000 but had a January 1, 2017, bookvalue of $9,800. At the time of transfer, the equipment's remaininglife was estimated to be five years.Percy has properly applied the equity method to the investmentin Sledge.Prepare worksheet entries to consolidate these two companies asof December 31, 2018.Compute the net income attributable to the noncontrollinginterest for 2018.