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Several years ago Polar Inc. acquired an 80% interest in Icecap Co. The book values of Icecap’s asset and liability accounts at that time were considered to be equal to their fair values. Polar’s acquisition value corresponded to the underlying book value of Icecap so that no allocations or goodwill resulted from the transaction.The following selected account balances were from the individual financial records of these two companies as of December 31, 2011:Icecap504000267000 147000252000154000220000not givenAssume that Polar sold inventory to Icecap at a markup equal to 25% of cost. Intra-entity transfers were $130,000 in 2010 and $165,000 in 2011. Of this inventory, $39,000 of the 2010 transfers were retained and then sold by Icecap in 2011 while $55,000 of the 2011 transfers were held until 2012.Compute (a) consolidated cost of sales, (b) noncontrolling interest share in income, (c) consolidated net income, (d) noncontrolling interest and (e) inventoryAssume that Icecap sold inventory to Polar at a markup equal to 25% of cost. Intra-entity transfers were $70,000 in 2010 and $112,000 in 2011. Of this inventory, $29,000 of the 2010 transfers were retained and then sold by Polar in 2011 whereas $49,000 of the 2011 transfers were held until 2012.Compute (a) consolidated cost of sales, (b) noncontrolling interest share in income, (c) consolidated net income, (d) noncontrolling interest and (e) inventory
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