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My Subscriptions for Menard Nautilus Co. acquired 100% of XYZ Corp. on 1/1/X1 XYZ reported a Net Income of $500,000 for year X1 and paid dividends of $50,000. During year X1, XYZ sold goods to Nautilus Corp for 5700,000 that cost XYZ 5500,000. Nautilus Corp still owned 40% of the goods at the end of the year. How much investment income should Nautilus recognize from its XYZ Investment in year X1? Select one: a $300,000 b. 5380,000 c. $420,000 d. 5500,000 e. None of the Above This question is a continuation of the preceding question about Nautilus and XYZ. Assume that in year X1 Nautilus reported Revenue of $4,000,000 and COGS of $2,000,000 while XYZ had $2,000,000 of Revenue and $1,000,000 of COGS. How much Consolidated COGS should be reported in year X1? Select one: a. $2,500,000 b. $2,700,000 C. $2,800,000 d. $3,000,000 e. None of the Above This problem extends the preceding questions about Nautilus and XYZ to year X2. Recall that in year X1 XYZ sold goods to Nautilus Corp for $700.000 that cost XYZ 5500,000 Nautilus Corp still owned 40% of the goods on 12/31/X1. Assume that in year X2 XYZ reported a Net Income of $600,000 and again paid $50,000 of dividends. During year X2, XYZ sold goods to Nautilus Corp for $400,000 that cost XYZ $300,000. Nautilus Corp owned 60% of the goods on 12/31/X2. How much investment income should Nautilus recognize from its XYZ investment in year ? Select one: a $500,000 5.5540,000 c.$600,000 d. 5620,000 e. None of the Above

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