In Problem 5-5 if the numbers where changed to this. Top Company holds 90 percent of Bottom Company’s common stock. In the current year, Top reports sales of $820,000 and cost of goods sold of $615,000. For this same period, Bottom has sales of $320,000 and cost of goods sold of $192,000. During the current year, Top sold merchandise to Bottom for $120,000. The subsidiary still possesses 40 percent of this inventory at the current year-end. Top had established the transfer price based on its normal gross profit rate. What are the consolidated sales and cost of goods sold?
In Problem 5-5 if the numbers where changed to this. Top Company holds 90 percent of Bottom Company’s common stock. In the current year, Top reports sales of $820,000 and cost of goods sold of $615,000. For this same period, Bottom has sales of $320,000 and cost of goods sold of $192,000. During the current year, Top sold merchandise to Bottom for $120,000. The subsidiary still possesses 40 percent of this inventory at the current year-end. Top had established the transfer price based on its normal gross profit rate. What are the consolidated sales and cost of goods sold?
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
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...
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In Problem 5-5 if the numbers where changed to this.
Top Company holds 90 percent of Bottom Company’s common stock. In the current year, Top reports sales of $820,000 and cost of goods sold of $615,000. For this same period, Bottom has sales of $320,000 and cost of goods sold of $192,000. During the current year, Top sold merchandise to Bottom for $120,000. The subsidiary still possesses 40 percent of this inventory at the current year-end. Top had established the transfer price based on its normal gross profit rate. What are the consolidated sales and cost of goods sold?
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