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Phone Corporation owns 80 percent of Smart Company's stock. At the end of 20X8, Phone and Smart reported the following partial operating results and inventory balances:

	Phone Corporation				Smart Company
Total sales	$	700,000			$	519,000
Sales to Smart Company		161,000
Sales to Phone Corporation						261,000
Net income						30,000
Operating income (excluding investment income from Smart)		80,000
Inventory on hand, December 31, 20X8, purchased from:
Smart Company		52,200
Phone Corporation						48,300

Phone regularly prices its products at cost plus a 40 percent markup for profit. Smart prices its sales at cost plus a 20 percent markup. The total sales reported by Phone and Smart include both intercompany sales and sales to nonaffiliates. Required: a. What amount of sales will be reported in the consolidated income statement for 20X8?

b. What amount of cost of goods sold will be reported in the 20X8 consolidated income statement? (Do not round intermediate calculations and round your final answers to nearest whole dollar amount.)

c. What amount of consolidated net income and income to controlling interest will be reported in the 20X8 consolidated income statement? d. What balance will be reported for inventory in the consolidated balance sheet for December 31, 20X8?

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