On january 1, 20x1, picture company acquired 70 percent ownership of seven corporation at underlying book value. the fair value of the noncontrolling interest at the date of acquisition was equal to 30 percent of the book value of seven corporation. on april 25, 20x1, seven purchased inventory from picture for $45,000. seven sold the entire inventory to an unaffiliated company for $58,000 on october 12, 20x1. picture had produced the inventory sold to seven for $38,000. the companies had no other transactions during 20x1. based on the information given above, what amount of sales will be reported in the 20x1 consolidated income statement?

1. the political environment in india has proven to be critical to company performance for both pepsico and coca-cola india. what specific aspects of the political environment have played key roles? could these effects have been anticipated prior to market entry? if not, could developments in the political arena have been handled better by each company? 2. timing of entry into the indian market brought different results for pepsico and coca-cola india. what benefits or disadvantages accrued as a result of earlier or later market entry? 3. the indian market is enormous in terms of population and geography. how have the two companies responded to the sheer scale of operations in india in terms of product policies, promotional activities, pricing policies, and distribution arrangements? 4. “global localization” (glocalization) is a policy that both companies have implemented successfully. give examples for each company from the case.