Block Corporation was created on January 1, 20X0, to develop computer software. On January 1, 20X5, Foster Company purchased 90 percent of Block’s common stock at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 10 percent of Block’s book value. Trial balances for Foster and Block on December 31, 20X9, are as follows: During 20X9, Block produced inventory for $20,000 and sold it to Foster for $30,000. Foster resold 60 percent of the inventory in 20X9. Also in 20X9, Foster sold inventory purchased from Block in 20X8. It had cost Block $60,000 to produce the inventory, and Foster purchased it for $75,000. Assume Foster uses the fully adjusted equity method. Required a. What amount of cost of goods sold will be reported in the 20X9 consolidated income statement? b. What inventory balance will be reported in the December 31, 20X9, consolidated balance sheet? c. What amount of income will be assigned to noncontrolling shareholders in the 20X9 consolidated income statement? d. What amount will be assigned to noncontrolling interest in the consolidated balance sheet prepared at December 31, 20X9? e. What amount of retained earnings will be reported in the consolidated balance sheet at December 31, 20X9? f. Give all elimination entries required to prepare a three-part consolidation worksheet at December 31, 20X9. g. Prepare a three-part consolidation worksheet at December 31,20X9.
bigthoughtwritingservices is a unique service that provides guidance with different types of content. Please rest assured that the service is absolutely legal and doesn’t violate any regulations. It can be used for generating new ideas and thoughts for your own project, additional insight into the subject, or encouragement for further researches.