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madisonrosamond99
madisonrosamond99
03.04.2020 • 
Business

Baxter, Inc, owns 90 percent of Wisconsin, Inc, and 20 percent of Cleveland Company. Wisconsin, in turn, holds 60 percent of Clevland's outstanding stock. No excess amortization resulted from these acquisition. During the current year, Cleveland sold a variety of inventory items to Wisconsin for $40,000 although the original cost was $30,000. Of this total, Wisconsin still held $12,000 in inventory(at transfer price) at year- end. During this same period, Wisconsin sold merchandise to Baxter for $100,000 although the original cost was only $70,000. At year-end, $40,000 of these goods (at the transfer price) was still on hand. The initial value method was used to record each of these investments. None of the companies holds any other investments. Baxter Wisconsin ClevelandSales $(1,000,000) $(450,000) $(280,000)Cost of goods sold 670,000 280,000 190,000Expenses 110,000 60,000 30,000Dividends income: Wisconsin (36,000) 0 0Cleveland (4,000) (12,000) 0Net income $(260,000) $(122,000) $(60,000)Using the above separate income statements, determine the figures that would appear on the consolidated income statement:a. Sales b. Cost of goods sold c. Expenses d. Dividends income e. Consolidated net income f. Noncontrolling interests in subsidiaries' income g. Controlling interest in consolidated net income

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