Preen Corporation acquired a 60% interest in Shino Corporation at a cost equal to 60% of the book value of Shino's net assets in 2014.At the time of acquisition,the book value and fair value of Shino's assets and liabilities were equal.During 2015,Preen sold $120,000 of merchandise to Shino.All intercompany sales are made at 150% of Preen's cost.Shino's beginning and ending inventories resulting from intercompany sales for 2015 were $60,000 and $36,000,respectively.Income statement information for both companies for 2015 is as follows:
Required:
Prepare a consolidated income statement for Preen Corporation and Subsidiary for 2015.
Definitions:
Follicle-Stimulating Hormone
A hormone secreted by the anterior pituitary gland that promotes the formation of ova or sperm.
Adrenal Glands
are small glands located above the kidneys that produce a variety of hormones including adrenaline and steroids like cortisol.
Kidneys
Vital organs involved in filtering waste from the blood, regulating blood pressure, and maintaining electrolyte balance.
Hyperthyroidism
A condition caused by excessive secretion of the thyroid glands.
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