Baxter inc owns 90 percent of wisconsin inc and 20 percent

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Reference no: EM13587474

Baxter, Inc., owns 90 percent of Wisconsin, Inc., and 20 percent of Cleveland Company. Wisconsin, in turn, holds 60 percent of Cleveland%u2019s outstanding stock. No excess amortization resulted from these acquisitions. 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			Cleveland
Sales	$	(1,000,000	)	$	(450,000	)	$	(280,000	)
Cost of goods sold		670,000			280,000			190,000
Expenses		110,000			60,000			30,000
Dividend income:
Wisconsin		(36,000	)		0			0
Cleveland		(4,000	)		(12,000	)		0

Net income	$	(260,000	)	$	(122,000	)	$	(60,000	)

Note: Parentheses indicate a credit balance.

Using the above separate income statements, determine the figures that would appear on a consolidated income statement. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values.)


Sales		$
Cost of goods sold		$
Expenses		$
Dividend income		$
Consolidated net income		$
Noncontrolling interests in subsidiaries' income		$
Controlling interest in consolidated net income		$

Reference no: EM13587474

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