Margaux CorporationA. 800,000B. 1,000,000C. 560,000D. 920,000 The separate incomes (which do not include investment income) of Celine Corporation andMargaux Corporation, its 80% owned subsidiary, for 2020 were determined as follows:CELINEP800,000MARGAUXSales .P200,000Less Cost of sales400,000P400,000120,000P 80,000Gross profit .Other expenses .200,000P200,00060,000Separate incomes.P 20,000During 2020 Celine sold merchandise that cost P40,000 to Margaux for P80,000, and atDecember 31, 2020 half of these inventory items remained unsold by Margaux.The Consolidated sales for 2020:

Consolidated sales for 2020 = Sales of Celine Corporation for 2020 + Sales of Margaux Corporation…

Answered: The Consolidated sales for 2020:

Business

Accounting

The Consolidated sales for 2020:

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 11MCQ

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Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of $160,000 for 2019. The corporation also has $30,000 in dividends from publicly traded domestic corporations in which the ownership percentage was 45 percent. Calculate the corporation's dividends received deduction for 2019. $_____________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $135,000. Calculate the corporation's dividends received deduction for 2019. $___________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $158,000. Calculate the corporation's dividends received deduction for 2019. $_____________
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Comparative income statements of Sub Corporation for the calendar years 2019, 2020, and 2021 are as follows (in thousands): 2019 2020 2021Sales $22,000 $18,500 $19,250Cost of sales 10,600 9,900 10,100Gross profit 11400 8600 9150Operating expenses 5,700 5,500 6,000Net income $ 5700 $ 3100 $ 3150ADDITIONAL INFORMATION1. Sub was an 80 percent-owned subsidiary of Pub Corporation throughout the 2019–2021 period. Pub’s…
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Comparative income statements of Sub Corporation for the calendar years 2019, 2020, and 2021 are as follows (in thousands): 2019 2020 2021 Sales $22,000 $18,500 $19,250 Cost of sales 10,600 9,900 10,100 Gross profit 11400 8600 9150 Operating expenses 5,700 5,500 6,000 Net income $ 5700 $ 3100 $ 3150 ADDITIONAL INFORMATION Sub was an 80 percent-owned subsidiary of Pub Corporation throughout the 2019–2021 period. Pub’s separate income (excludes income from Sub) was $7,200,000, $6,600,000, and $7,500,000 in 2019, 2020, and 2021, respectively. Pub acquired its interest in Sub at its underlying book value, which was equal to fair value on July 1, 2017. Pub sold inventory items to Sub during…
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