Pepper Corporation owns 75 percent of Salt Company's voting shares. During 20X8, Pepper produced 50,000 chairs at a cost of $79 each and sold 35,000 chairs to Salt for $90 each. Salt sold 18,000 of the chairs to unaffiliated companies for $117 each prior to December 31, 20X8, and sold the remainder in early 20X9 to unaffiliated companies for $130 each. Both companies use perpetual inventory systems. Based on the information given above, what amount of cost of goods sold must be reported in the consolidated income statement for 20X8? Multiple Choice A. $1,422,000B. $2,963,000 C. $1,620,000 D. $2,765,000 Requlred InformationRMera Township reported the following data for Its governmental activitles for the year ended June 30, 20X9:Amount$1,000,ee0300, ee0ItemCash and cash equivalentSReceivablesCapital assetsAccumulated depreciationAccounts payableLong-tern 1iabilities8,500,8001,200, eee400, eee024,000,000Additional Information avallable is as follows:All of the long-term debt was used to acquire capital assets. Cash of $475,000 Is restricted for debt service.Based on the preceding Information, on the statement of net assets prepared at June 30, 20X9, what amount should be reported for net assets, unrestricted?Multiple Cholce$525,000$900,000$425,000$825,000

When one company acquired shares of another company then one company is parent company and other…

Answered: Pepper Corporation owns 75 percent of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Pepper Corporation owns 75 percent of Salt Company's voting shares. During 20X8, Pepper produced 50,000 chairs at a cost of $79 each and sold 35,000 chairs to Salt for $90 each. Salt sold 18,000 of the chairs to unaffiliated companies for $117 each prior to December 31, 20X8, and sold the remainder in early 20X9 to unaffiliated companies for $130 each. Both companies use perpetual inventory systems. Based on the information given above, what amount of cost of goods sold must be reported in the consolidated income statement for 20X8?
Multiple Choice

A. $1,422,000
B. $2,963,000
C. $1,620,000
D. $2,765,000

Requlred Information
RMera Township reported the following data for Its governmental activitles for the year ended June 30, 20X9:
Amount
$1,000,ee0
300, ee0
Item
Cash and cash equivalentS
Receivables
Capital assets
Accumulated depreciation
Accounts payable
Long-tern 1iabilities
8,500,800
1,200, eee
400, eee
02
4,000,000
Additional Information avallable is as follows:
All of the long-term debt was used to acquire capital assets. Cash of $475,000 Is restricted for debt service.
Based on the preceding Information, on the statement of net assets prepared at June 30, 20X9, what amount should be reported for net assets, unrestricted?
Multiple Cholce
$525,000
$900,000
$425,000
$825,000

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