Please answer it. E 6-3 Computation of net income for upstream and downstream sales...
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E 6-3 Computation of net income for upstream and downstream sales of land Patay Corporation acquired a 90 percent interest in Satay Corporation, when the book value of Satay's net assets was equal to their fair value in 2014. On January 1, 2015, Patay sold land with a book value of $50,000 to Satay for $75,000 and, at the same time, Satay sold land with a book value of $20,000 to Patay for $25,000. Both Patay and Satay still owned the land at 31 December 2016. The separate income statements of Patay and Satay for 2015 and 2016 are summarized below in thousands): 2015 2016 Patay Satay Patay $5,000 3,000 Sales Cost of Sales Depreciation expense Other expense Net income Satay $1,200 900 80 300 $6,000 3,800 350 400 $1,450 $1,500 1,000 100 75 $325 50 500 $1,200 $170 REQUIRED: Compute the consolidated net income for 2015 and 2016
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