PROBLEM 2:

Case 1:
COGS, parent 600,000.00
COGS, subsidiary 250,000.00
intercompany sales (80,000.00)
UPEI (80,000 x 20% x 50% GPR) 8,000.00
Conso COGS 778,000.00

Parent NCI Total

Own operations 200,000.00 200,000.00
Subsidiary income 135,000.00 15,000.00 150,000.00
UPEI - upstream (7,200.00) (800.00) (8,000.00)
Consolidated income 327,800.00 14,200.00 342,000.00

Case 2:
COGS, parent 720,000.00
COGS, subsidiary 350,000.00
Intercompany sales (120,000.00)
RPBI (80,000 x 20% x 40%) (6,400.00)
UPEI (120,000 x 30% x 40%) 14,400.00
Conso COGS 958,000.00

Parent NCI Total

Own operations 230,000.00 230,000.00
Subsidiary income 135,000.00 15,000.00 150,000.00
RPBI - downstream 6,400.00 6,400.00
UPEI - downstream (14,400.00) (14,400.00)
Consolidated income 357,000.00 15,000.00 372,000.00

PROBLEM 3:
Gross profit, parent 10,000,000.00
Gross profit, subsidiary 5,600,000.00
RPBI - upstream (240,000 X 25%) 60,000.00
RPBI - downstream (100,000 x 25 / 125) 20,000.00
UPEI - upstream (160,000 x 25%) (40,000.00)
UPEI - downstream (40,000 x 25 / 125) (8,000.00)
Conso Gross Profit 15,632,000.00

Parent NCI Total

PNI 4,000,000.00 4,000,000.00
SNI 1,639,800.00 182,200.00 1,822,000.00
RPBI - upstream 54,000.00 6,000.00 60,000.00
RPBI - downstream 20,000.00 20,000.00
UPEI - upstream (36,000.00) (4,000.00) (40,000.00)
UPEI - downstream (8,000.00) (8,000.00)
Realized gain on sale of land - downstream 500,000.00 500,000.00
Unrealized loss on sale of equipment - upstream 16,200.00 1,800.00 18,000.00
Realized loss on sale of equipment (18,000 / 3) (2,700.00) (300.00) (3,000.00)
Consolidated income 6,183,300.00 185,700.00 6,369,000.00

OPEX parent 6,000,000.00

OPEX subsidiary 3,800,000.00
Realized loss on equipment 3,000.00
Consolidated OPEX 9,803,000.00