Assume that Polar sold inventory to Icecap at a markup equal to 25% of cost.Intra-entity transfers were $130,000 in 2017 and $165,000 in 2018.Of this inventory, $39,000 of the 2017 transfers were retained and then sold by Icecap in 2018, while $55,000 of the 2018 transfers was held until 2019.
Required:
For the consolidated financial statements for 2018, determine the balances that would appear for the following accounts: (i) Cost of Goods Sold; (ii) Inventory; and (iii) Net income attributable to the noncontrolling interest.

Question

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The Answer of Assume that Polar sold inventory to Icecap at a markup equal to 25% of cost.Intra-entity transfers were $130,000 in 2017 and $165,000 in 2018.Of this inventory, $39,000 of the 2017 transfers were retained and then sold by Icecap in 2018, while $55,000 of the 2018 transfers was held until 2019.
Required:
For the consolidated financial statements for 2018, determine the balances that would appear for the following accounts: (i) Cost of Goods Sold; (ii) Inventory; and (iii) Net income attributable to the noncontrolling interest.

Assume That Polar Sold Inventory to Icecap at a Markup