During 2013 sanchez sells inventory costing 120000 to

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Reference no: EM13569650

Following are several figures reported for Preston and Sanchez as of December 31, 2013:

Preston Sanchez

Inventory 400,000 200,000

Sales . . . . . 800,000 600,000

Investment Income Not given

Cost of goods sold 400,000 300,000

Operating Expenses 180,000 250,000

Preston acquired 70% of Sanchez in January 2012. In allocating the newly acquired subsidiary's fair valu at the acquisition date, Preston noted that Sanchez had developed a customer list worth $ 65,000 that was unrecorded on its accounting records and had a five-year remaing life. Any remaining excess fair value over Sanchez's book value was attributed to goodwill. During 2013, Sanchez sells inventory costing $ 120,000 to Preston for $ 160,000. Of this amount, 20% remains unsold in Preston's warehouse at year-end. For Preston's consolidated reports, determine the following amounts to be reported for the current year.

Inventory,

Sales,

Cost of good sold,

Operating Expenses

Noncontrolling interest in the subsidiary's Net Income

Reference no: EM13569650

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