Following are several figures reported for Preston and Sanchez as of December 31, 2013:
Preston Sanchez
Inventory 400,000 200,000
Sales . . . . . 800,000 600,000
Investment Income Not given
Cost of goods sold 400,000 300,000
Operating Expenses 180,000 250,000
Preston acquired 70% of Sanchez in January 2012. In allocating the newly acquired subsidiary's fair valu at the acquisition date, Preston noted that Sanchez had developed a customer list worth $ 65,000 that was unrecorded on its accounting records and had a five-year remaing life. Any remaining excess fair value over Sanchez's book value was attributed to goodwill. During 2013, Sanchez sells inventory costing $ 120,000 to Preston for $ 160,000. Of this amount, 20% remains unsold in Preston's warehouse at year-end. For Preston's consolidated reports, determine the following amounts to be reported for the current year.
Inventory,
Sales,
Cost of good sold,
Operating Expenses
Noncontrolling interest in the subsidiary's Net Income