Less: Realized profit in beginning inventory - Add: Depreciation of FVA on Add: Depreciation of FVA on inventory inventory -

n of FVA on inventory inventory - Consolidated cost of sales 682,50 0 Requirement (c): Ending inventory of Parent 300,000 Ending inven
ry of Parent 300,000 Ending inventory of Subsidiary 80,000 Less: Unrealized profit in ending inventory (10,500) Consolidated ending inven
0,500) Consolidated ending inventory 369,500 2. Solutions: Requirement (a): Historical Historical cost 120,000 Accumulated dep'n. 1/ A
120,000 Accumulated dep'n. 1/ Accumulated dep'n. 1/1/x1 (72,000) Depreciation Depreciation based on historical historical cost (12,00
on historical historical cost (12,000) (12,000) Carrying Carrying amount 36,000 The solution above is based on the notion that it is as if th
sed on the notion that it is as if the intercompany sale never happened . Requirement (b): Equipment Equipment - net (Bright (Bright Co.)
quipment - net (Bright (Bright Co.) 400,000 400,000 Equipment Equipment - net (Dull Co.) 190,000 Unamortized deferred gain (see Step 1
mortized deferred gain (see Step 1 below) (9,000) Consolidated Consolidated equipment equipment - net 581,000 581,000 OR Equipmen
et 581,000 581,000 OR Equipment Equipment - net (Bright (Bright Co.) 400,000 Equipment Equipment - net (Dull