1.Pratt Company owns80% of Storey Company's common stock. During 2011, Storey sold $400,000 of merchandise to Pratt. At December 31,2011, 1/4 of hte merchandie remained in Pratt's inventory. In 2011,gross profit percentages were 25% for Pratt and 30% for Storey. The amount of unrealized intercompany profit that should be eliminated in the consolidated statements is
a.80,000 b.24,000 c.30,000 d.25,000
2.Perez Company acquired an 80% interest in Seaman Company Co in 2011. In 2011 and 2012, Sutton reportaed net income Of 400,000 and 480,000, respectively. During 2011, Seaman sold 80% of merchandise to Perez for a 20,000 profit. Perez sold the merchandise to outsiders during 2012 for 140,000. For consolidation purposes, what is the noncontrolling interest's share of Seaman's 2011 and 2012 net income.