please answer all parts within 30 minutes. Problem 3Sub is an 80% owned subsidiary of Parent. The income statements for the 2 companies for 2020 are as follows:ParentSubSalesCost of goods soldGross ProfitOther expensesOperating incomeSubsidiary incomeNet Income240,000-160,00080,000-32,00048,00020,00068,000160,000-115,00045,000-20,00025,00025,000The following facts apply to 2020:1 Sub sold $80,000 of goods to Parent at the same gross profit as all of its sales, both this year and in the past.2 Parent held $28,000 of goods purchased from Sub in its beginning inventory and $32,000 of such goods in its ending inventory.Prepare journal entries at December 31, 2020 in order to consolidate the companies.The supporting distribution of income schedules should be prepared as well.

Name: please answer all parts within 30 minutes. Problem 3Sub is an 80% owne
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Description: please answer all parts within 30 minutes. Problem 3Sub is an 80% owned subsidiary of Parent. The income statements for the 2 companies for 2020 are as follows:ParentSubSalesCost of goods soldGross ProfitOther expensesOperating incomeSubsidiary incom

Subsidiary company is a 80% owned company of the parent Company. Any intercompany sales taking place…

Answered: Prepare journal entries at December 31,…

Business

Accounting

Prepare journal entries at December 31, 2020 in order to consolidate the companies. The supporting distribution of income schedules should be prepared as well.

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 5P: Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of...

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