On January Sledge had common stock of $ and retained earnings of $ During that year, Sledge reported sales of $ cost of goods sold of $ and operating expenses of $
On January Percy, Incorporated, acquired percent of Sledge's outstanding voting stock. At that date, $ of the acquisitiondate fair value was assigned to unrecorded contracts with a year life and $ to an undervalued building with a year remaining life
In Sledge sold inventory costing $ to Percy for $ Of this merchandise, Percy continued to hold $ at yearend. During Sledge transferred inventory costing $ to Percy for $ Percy still held half of these items at yearend.
On January Percy sold equipment to Sledge for $ This asset originally cost $ but had a January book value of $ At the time of transfer, the equipment's remaining life was estimated to be five years.
Percy has properly applied the equity method to the investment in Sledge.
Required:
Prepare worksheet entries to consolidate these two companies as of December
Compute the net income attributable to the noncontrolling interest for
