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Pace Company owns 85% of the outstanding common stock of Sand Company and all the outstanding...

Pace Company owns 85% of the outstanding common stock of Sand Company and all the outstanding common stock of Star Company. During 2015, the affiliates engaged in intercompany sales as follow

Sales of MerchandisePace to Sand$40,000Sand to Pace 60,000Sand to Star 75,000Star to Pace 50,000= $225,00

The following amounts of intercompany profits were included in the December 31, 2014, and December 31,2015, inventories of the individual companies:

Intercompany Profit inDecember 31, 2014, Inventory o fSelling Company Pace Sand Star Total Pace Company$7,000 $7,000Sand Company$5,000 $3,000 8,000 Star Company8,000 8,000 Total $13,000 $7,000 $3,000    $23,000

Intercompany Profit inDecember 31, 2015, Inventory ofSelling CompanyPaceSandStarTotalPace Company$2,000 $2,000 Sand Compan y$6,000 $9,000 15,000 Star Company4,000 4,000 Total $10,000 $2,000 $9,000 $21,000

Income from each company’s independent operations (including sales to affiliates) for the year endedDecember 31, 2015, is presented here:

Pace Company $200,000 Sand Company 150,000 Star Company 125,000

Required :A.Prepare in general journal form the workpaper entries necessary to eliminate intercompany sales and inter-company profit in the December 31, 2015, consolidated financial statements workpaper.

B.Calculate the balance to be reported in the consolidated income statement for the following line items:Consolidated incomeNoncontrolling interest in consolidated incomeControlling interest in consolidated income

PLEASE SHOW ALL YOU"RE WORK FOR EACH PROBLEM.

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