Assume That Icecap Sold Inventory to Polar at a Markup

question 38

Essay

Assume that Icecap sold inventory to Polar at a markup equal to 25% of cost.Intra-entity transfers were $70,000 in 2017 and $112,000 in 2018.Of this inventory, $29,000 of the 2017 transfers were retained and then sold by Polar in 2018, whereas $49,000 of the 2018 transfers was held until 2019.
Required:
For the consolidated financial statements for 2018, determine the balances that would appear for the following accounts: (i) Cost of Goods Sold; (ii) Inventory; and (iii) Net income attributable to the noncontrolling interest.

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Definitions:

International Business

Commercial transactions, including sales, investments, and logistics, that occur across international borders.

Regulations

Rules or directives made and maintained by an authority to regulate behavior, usually in a specific activity or industry.

Laws

Systematized rules created and enforced through social or governmental institutions to regulate behavior.

Wealthy

Having a substantial amount of money, assets, or resources; rich.