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Keene Corp. owns 80% of Daum LLC. In 2019, Keene sold 10,000 units of inventory to Daum. That inventory cost Keene $250,000 to produce and was sold to Daum for $32 per unit. Daum resold 80% of that inventory for $40 per unit in 2019. In 2020, Daum buys an additional 15,000 units from Keene for $34 per unit that originally cost $390,000 to produce. Daum sells all of its inventory in 2020 for $43 per unit. Assume Keene uses the initial value method to account for its investment in Daum.
Problem 1: Provide the consolidation worksheet adjustments required in 2020.
Problem 2: How much do the adjustments affect net income attributable to minority interest? (positive number for increase, negative number for decrease)
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