Reference no: EM132589439

Question - During 2019, Patrice sold $50,000 worth of inventory to Sarah, 60% of which was sold to outsiders during the year.

During 2020, Patrice sold inventory to Sarah for $90,000. Two-thirds of this inventory was resold by Sarah to outside parties.

During 2019, Sarah sold $30,000 worth of inventory to Patrice, 90% of which was sold to outsiders during the year.

During 2020, Sarah sold inventory to Patrice for $40,000. 75% of this inventory was resold by Patrice to outside parties. As of December 31, 2020, Patrice still owes $20,000 to Sarah for the inventory.

All intercompany sales as well as sales to outside parties earn a gross margin on sales of 20%.

Above information how will impact on consolidated statements and calculation of Consolidated Net Income and NCI?