Income data from the records of Par Corporation and Sum Corporation, Par’s 80 percent-owned subsidiary, for 2011 through 2014 follow (in thousands):
| 2011 | 2012 | 2013 | 2014 |
Par’s separate income | $200 | $150 | $40 | $120 |
Sum’s net income | 60 | 70 | 80 | 90 |
Par acquired its interest in Sum on January 1, 2011, at a price of $40,000 less than book value. The $40,000 was assigned to a reduction of plant assets with a remaining useful life of 10 years.
On July 1, 2011, Sum sold land that cost $25,000 to Par for $30,000. This land was resold by Par for $35,000 in 2014.
Par sold machinery to Sum for $100,000 on January 2, 2012. This machinery had a book value of $75,000 at the time of sale and is being depreciated by Sum at the rate of $20,000 per year.
Par’s December 31, 2013, inventory included $8,000 unrealized profit on merchandise acquired from Sum during 2013. This merchandise was sold by Par during 2014.
REQUIRED: Prepare a schedule to calculate the consolidated net income of Par Corporation and Subsidiary for each of the years 2011, 2012, 2013, and 2014.
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