question archive Manama Co owns 80 % of the outstanding common stock of Muscat Co
Manama Co owns 80 % of the outstanding common stock of Muscat Co
Subject:BusinessPrice: Bought3
Manama Co owns 80 % of the outstanding common stock of Muscat Co. The book values and fair values of Muscat's assets and liabilities were equal. Manama purchases its entire inventory from Muscat at 150% of Muscat's cost. During 2020, Muscat sold $490,000 of merchandise to Manama. Manama's beginning and ending inventories for 2020 were $72,000 and $66,000, respectively. Income statement information for both companies for 2020 is as follows: Muscat $440,000 Sales Revenue Investment income from Muscat Cost of Goods Sold Expenses Net Income Manama $ 820,000 145.600 (460,000) (120,000) $ 385,600 (165,000) (95.000) $ 180,000 Required: Prepare a consolidated income statement for Manama Co and Subsidiary for 2020. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)
