During 2013 sanchez sells inventory costing 120000 to

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Reference no: EM13483326

Please show work: Following are several figures reported for Preston and Sanchez as of Dec. 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 Jan. 2012. In allocating the newly acquired subsidiary's fair-valueat 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 5 year remaining life. Any remainign excess fair value over Sanche'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 Goods Sold

Operating Expenses

Noncontrolling Interest in the Subsidiary's Net Income

Reference no: EM13483326

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