$200,000 Shipment from Home Office $444,000 The branch acquires all of its merchandise from the Home Office. The inventories of the Branch at billed prices are:
$200,000 Shipment from Home Office $444,000 The branch acquires all of its merchandise from the Home Office. The inventories of the Branch at billed prices are:
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...
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The following are extracted from the records of DONATELLO CO. and its branch MICHELANGELO Co. on December 31, 2008, the third year of the corporation's existence:
DONATELLO CO. | MICHELANGELO CO. | |
Allowance for Overvaluation | $72,500 | |
Sales | $600,000 | |
Expenses | $200,000 | |
Shipment from Home Office | $444,000 |
The branch acquires all of its merchandise from the Home Office.
The inventories of the Branch at billed prices are:
- January 1, 2008-$47,717.18
- December 31, 2008-$84,000
Determine the branch profit-adjusted.
a)107,500
b)49,000
c)25,766
d)58,500
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