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Shine Corporation purchased 30 percent of the common stock of Ash Corporation on January 1, 2007, at $28,000 in excess of underlying book value. The...

This question is a comparison of Cost versus Equity Reporting and consolidated financial statements. The requirements are spelled out in the attached file.

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Shine Ash Year Operating Income Dividends Net Income Dividends 2007 1,000,000 130,000 400,000 40,000 2008 960,000 140,000 300,000 40,000 2009 1,200,000 140,000 500,000 22,000 Shine Corporation purchased 30 percent of the common stock of Ash Corporation on January 1, 2007, at  $28,000 in excess of underlying book value. The excess is attributable to equipment with a remaining useful life  of 2 years. The companies reported the following operating results and dividends for the three years following  the date of purchase: Barnes Company acquired 80% of the outstanding voting stock of Dean Company on January 1, 2008. During  2008 Dean Company sold inventory costing $50,000 to Barnes Company for $80,000. Barnes Company  continued to hold the inventory at December 31, 2008. Also during 2008, Barnes Company sold merchandise  costing $400,000 to nonaffiliates for $600,000, and on its separate balance sheet reported total inventory at  year end of $140,000. In its separate financial statements, Dean Company reported total sales and cost of  goods sold of $350,000 and $220,000, respectively, for 2008 and ending inventory of $50,000. Required: Based on the above information, compute the amounts that should appear in the consolidated  financial statements prepared for Barnes Company and it subsidiary, Dean Company, at year end for the  following items: 1) sales; 2) cost of goods sold; 3) gross profit on sales; 4) inventory. 
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Shine Corporation purchased 30 percent of the common stock of Ash Corporation on January 1, 2007, at $28,000 in excess of underlying book value. The excess is attributable to equipment with a...

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