Assignment 5 ue Februaw 7),r , Protected VIEW , Saved to this PC a Tjahyadi File Home Insert Draw Design Layout References Mailings Review View Help...

Both companies use straight-line amortization and pay income taxes at a marginal rate of 40%.

Following are condensed income statements for the two companies for the year ended December 31,

2018:

Assignment 5 ue Februaw 7),r , Protected VIEW , Saved to this PC a Tjahyadi File Home Insert Draw Design Layout References Mailings Review View Help ,0 Tell me what you want to do® PROTECTED VIEW Be careful—files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing xITPun Inc. Syrup Ltd. Total revenues 5 5,152,000 S 1,946,000 Cost of goods sold 2,246,000 734,000 Amortization expense 966,000 352,000 * Otherexpenses 704,000 306,000 Income tax expense 500,000 200,000 Net income and comprehensive income 736,000 3 354,000 The following balances have been selected from the statements of financial position of the twocompanies as at December 31, 2018: Accounts receivable $ 1,974,000 S 265,000Inventories 2,872,000 1,574,000Capital assets (net) 6,934,000 2,468,000Patents (net) 526,000 - Land 1,744,000 684,000Long-term debt 3,752,000 1,490,000Retained earnings, end of year 9,666,000 2,818,000 Required: a) Prepare a consolidated income statement for Pan Inc. and its subsidiary, Syrup Ltd,, for the yearended December 31, 2018. b) Calculate the amount of investment income that Pan Inc, would report for 2018 from its investmentin Syrup Ltd. if it was to prepare its single company financial statements using the equity method toaccount for its investment in its subsidiary. c) What amount would appear in the consolidated statement of financial position of Pan Inc. and itssubsidiary, Syrup Ltd., as at December 31, 2018, for each of the following: i) patents (net); ii) non-controlling interest;iii) accounts receivable; iv) long-term debt. ***** Paqel cl 4 1361 words - —I—+ 100%