The consolidated income statement for POP Industries and its75% Subsidiary, SAS at the end...

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Accounting

The consolidated income statement for POP Industries and its75% Subsidiary, SAS at the end of 2019 was as follows: Consolidatedsales $900,000 , Consolidated cost of Sales $500,000 Operatingexpenses $200,000, Noncontrolling interest share $25,000 ,andControlling interest share $175,000.
After preparing the consolidated income statement, theaccountants discovered that POP had sold inventory that cost$75,000 to SAS for $95,000, and SAS had sold inventory that cost$40,000 to POP for $58,000. Half of the products from bothtransactions still remained in inventory at December 31, 2019.These intercompany sales transactions had not been properlyeliminated in consolidation.
Required: Prepare the consolidated income statement for POPand Subsidiary for 2019 after correcting these errors. (Supportyour answer with detailed Formulas, calculations andexplanation)

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Answer Step 1 The consolidated income statement Consolidated sales 900000 LESS Cost of sales 500000 Gross profit 400000 LESS Operatong expenses 200000 Operating See Answer

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In: AccountingThe consolidated income statement for POP Industries and its75% Subsidiary, SAS at the end of...The consolidated income statement for POP Industries and its75% Subsidiary, SAS at the end of 2019 was as follows: Consolidatedsales $900,000 , Consolidated cost of Sales $500,000 Operatingexpenses $200,000, Noncontrolling interest share $25,000 ,andControlling interest share $175,000.After preparing the consolidated income statement, theaccountants discovered that POP had sold inventory that cost$75,000 to SAS for $95,000, and SAS had sold inventory that cost$40,000 to POP for $58,000. Half of the products from bothtransactions still remained in inventory at December 31, 2019.These intercompany sales transactions had not been properlyeliminated in consolidation.Required: Prepare the consolidated income statement for POPand Subsidiary for 2019 after correcting these errors. (Supportyour answer with detailed Formulas, calculations andexplanation)