Question

Following are several figures reported for Allister and Barone as of December 31, 2018:

Answer 1

Answer and Explanation:

The computation of inventory, sales, cost of goods sold, Operating expenses  and Net income attributable to non-controlling interest  is shown below:-

But before that we need to determine the following calculations

Unrealized profit on inventory = ($172,000 - $126,000) × 10%

= $4,600

Customer list amortization = $70,000 ÷ 4

= $17,500

Inventory = $530,000 + $330,000 - $4,600

= $855,400

Sales = $1,060,000 + $860,000 - $172,000

= $1,748,000

Cost of goods sold = $530,000 + $430,000 + $4,600 - $172,000

= $792,600

Operating expenses = $245,000 + $315,000 + $17,500

= $577,500

Net income attributable to non-controlling interest = 10% × ($860,000 - $430,000 - $315,000 - $4,600 - $17,500)

= 10% × $92,900

= $9,290