Suzy Company acquired an 80 interest in Anderson Company on January 1, 2023 in exchange for various considerations totaling $640,000. At the acquisition date, the fair value of the noncontrolling interest was $160,000. Anderson's book value of net assets on that date was $680,000. Suzy attributed the excess of fair value over Anderson's book value to undervalued equipment with a 6-year remaining life.
Anderson regularly sells inventory to Suzy at a 20 percent gross profit rate. Suzy consistently resold this merchandise in the year of acquisition or in the period immediately following. Transfers for the two years after this business combination were the following:
Year Transfer Price Inventory Remaining at Year-End(at transfer price)
2023 $90,000 $15,000
2024 $120,000 $25,000
Anderson's reported net income for 2024 was $152,000. The following selected account balances are from the individual financial records of these two companies as of December 31, 2024:
Suzy Anderson
Sales $980,000 $512,000
Cost of goods sold 450,000 310,000
Inventory 250,000 130,000
Answer the following questions:
(Do not add dollar sign; do not add comma to your amount; round the answer to the whole number)
• Determine the amount of intra-entity profit remains in Suzy's inventory at the end of year 2023.
• Determine the amount of intra-entity profit remains in Suzy's inventory at the end of year 2024.
• What is the amount of Equity in Anderson Earnings for year 2024?
• What is the amount of noncontrolling interest net income for 2024?
• What is the amount of noncontrolling interest net income for 2024?
• Determine the consolidated balance of sales for 2024.
• Determine the consolidated balance of cost of goods sold for 2024.
• Determine the consolidated balance of inventory as of December 31, 2024.