In 2020, parent reports Cost of Goods Sold of $4,000,000. Its 90% owned subsidiary reports Cost of Goods Sold of $1,000,000 in 2020. During 2019 the subsidiary had $60,000 of unrealized gains on intercompany sales to its parent. By the end of 2020, all inventory subject to the intercompany transfer has been sold to third parties. In 2020, the subsidiary had sold $200,000 of goods to its parent and had $30,000 of unrealized gains. How much is consolidated cost of goods sold in 2020.

In 2020, parent reports Cost of Goods Sold of $4,000,000. Its 90% owned subsidiary reports Cost of Goods Sold of $1,000,000 in 2020. During 2019 the subsidiary had $60,000 of unrealized gains on intercompany sales to its parent. By the end of 2020, all inventory subject to the intercompany transfer has been sold to third parties. In 2020, the subsidiary had sold $200,000 of goods to its parent and had $30,000 of unrealized gains. How much is consolidated cost of goods sold in 2020.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 2P

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