Jawaban Advance S7-23 eliminasi penjualan arus keatas

a.		Eliminating entries, December 31, 20X8:
	E(1)			Income from Subsidiary			32,000
				Investment in Superior Filter Stock				32,000
				Eliminate income from subsidiary.
	E(2)			Income to Noncontrolling Interest			9,000
				Noncontrolling Interest				9,000
				Assign income to noncontrolling interest.
	E(3)			Common Stock — Superior Filter Company			90,000
				Retained Earnings, January 1			220,000
				Investment in Superior Filter Stock				248,000
				Noncontrolling Interest				62,000
				Eliminate beginning investment balance.
	E(4)			Retained Earnings, January 1			16,000
				Noncontrolling Interest			4,000
				Cost of Goods Sold				20,000
				Eliminate beginning inventory profit.
	E(5)			Sales			150,000
				Cost of Goods Sold				135,000
				Inventory				15,000
				Eliminate unrealized inventory profit:
				$15,000	=	$  45,000 -  [$45,000 x ($100,000 / $150,000)]
				$135,000	=	$100,000    CGS recorded by Superior
						105,000    CGS recorded by Clean Air
						$205,000
						(70,000)   Consolidated amount:
						$100,000 x ($105,000 / $150,000)
						$135,000    Required elimination

b.	Computation of consolidated net income and income assigned to controlling interest:
		Operating income reported by Clean Air Products
		($250,000 - $175,000 - $30,000)	$  45,000
		Net income of Superior Filter
		($200,000 - $140,000 - $20,000)	40,000
			$  85,000
		Inventory profit realized from 20X7	20,000
		Unrealized inventory profit for 20X8	(15,000)
		Consolidated net income	$  90,000
		Income assigned to noncontrolling interest
		($40,000 + $20,000 - $15,000) x .20	(9,000)
		Income assigned to controlling interest	$  81,000
c.	Noncontrolling interest, December 31, 20X8:
		Common stock	$  90,000
		Retained earnings ($220,000 + $40,000)	260,000
		Less: Unrealized inventory profit	(15,000)
			$335,000
		Proportion of stock held by noncontrolling
		interest	x        .20
		Noncontrolling interest	$  67,000