a) Prepare a schedule of intercompany profits as at December 31,… Xnip #13 On January 1, Year 2, P Corp. acquired 80% of S Corp. for $700,000. P uses the cost method toaccount for its investment in S. On January 1, Year 2, S’s retained earnings and common shares were$200,000 and $120,000, respectively. S’s book values did not differ materially from its fair values … Show more… Show morea) Prepare a schedule of intercompany profits as at December 31, Year 5 for both companies.b) Compute the Consolidated Net Income for Year 5 and show its allocation between the controlling and non-controlling interests. Do not prepare an Income Statement. No marks will be given for income statement. Accounting Business Financial Accounting BUSI 4423
