Please show work: Following are several figures reported for Preston and Sanchez as of Dec. 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 Jan. 2012. In allocating the newly acquired subsidiary's fair-valueat 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 5 year remaining life. Any remainign excess fair value over Sanche'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 Goods Sold
Operating Expenses
Noncontrolling Interest in the Subsidiary's Net Income