Problem 1.

75% 25%
Total Parent NCI 180,000
225,000 170,000 55,000 (20,000)
BV (180,000) (135,000) (45,000) 5,000
Excess 45,000 35,000 10,000 30,000
Equipment 20,000 195,000
Inventories (5,000) 48,750
Building (30,000) (11,250) (3,750)
Excess 30,000 23,750 6,250
79% 26%
a.
Sales by PIG 1,000,000
Sales by Piglet 233,333
Elimination (150,000)
Consolidated Sales 1,083,333

b. Conso COGS
COGS -PIG 400,000
COGS Piglet 100,000
Elimination (150,000)
Unrealized Profit 7,500
COGS - Inventory excess FV 5,000 273,500
Conso COGs 362,500

c. Conso Gross Profit 720,833

Distribution Cost (233,333)
Admin Cost (96,667)
Equipment Dep. 1,333
Building Dep. (1,000)
Income Tax Expense (121,000)
Impairment (8,000)
Consolidated Profit 262,167

d.
Revenues 233,333
COGs 100,000
GP 133,333
Distribution (33,333)
Admin (16,667)
Income Tax Expense (25,000)
Amort
Inventory (5,000)
Equipment 1,333
Building (1,000)
Adjusted NI 53,667
% of NCI 13,417
Impairment Share of NCI (1,667)
NCI in NI 11,750

e.
Conso NI 262,167
NCI NI 11,750
Net Income to Parent 250,417

f. Beg 55,000
NCI 11,750
Share in Dividends (3,333)
NCI, end 63,417

Problem 2.
a. P Company S Company Total
Net Income 50,000 36,000 86,000
Realized Inter-co Profit 9,000 7,500 16,500
Unrealized Inter-co Profit 3,000 1,800 4,800
Amortization 0 6,000 6,000
Adjusted NI 56,000 35,700 91,700
NCI NI (b) 3,570
Profit to Parent (a) 88,130

Problem 3
a. Consolidated Sales
YM Co. 3,850,000
PV Co. 1,680,000
Interco. Sales - 917,500
Consolidated Sales 4,612,500

b. Consolidated COGS
YM Co. 1,946,000
PV Co. 1,176,000
Inter co COGS - 917,500
Realized Inter co Profit - 42,000
Unrealized Inter-co Profit 39,550
Consolidated COGS 2,202,050

c. Conso Net Income

Conso Sales 4,612,500
Conso COGS - 2,202,050
Operating Expense - 1,050,000
Dividend Income - non affiliate 70,000
Conso Net Income 1,430,450

d. NCI in Net Income

Net Income, PV 224,000
Unrealized Profit - 26,950
Dividend Income 70,000
Adjusted Subsidiary's Net Inc 267,050
NCI % 30%
NCI in Net Income 80,115

Problem 4.
 Pretty Suave Total
Net Income 260,000 39,000 299,000
Realized Inter-co Profit 2,600 2,600
Unrealized inter-co Profit 3,900 3,900
Adjusted NI 260,000 37,700 297,700
NCI NI 11,310
NCI to Pretty (a) 286,390

b. Assuming full Goodwill

Total Parent NCI
455,000 318,500 136,500

NCI, Beg. 136,500

NCI in NI 11,310
Share in Dividends 7,800
NCI in Net Assets 140,010

Assuming Partial Goodwill

Total Parent NCI
455,000 318,500 136,500

NCI, Beg. 136,500

NCI in NI 11,310
Share in Dividends 7,800
NCI in Net Assets 140,010
226,667