Z Inc. acquired 75% of the outstanding voting common stock ofY Inc. on January 1, 2016, for $350,00. At the end of 2016, Z Inc. reported revenues of $300,000 and Y Inc. reported revenues of $210,000. During 2016, Z Inc. sold inventory for $75,000 to Y Inc. which has paid only half of this purchase till the end of 2016. Also, 60% of these goods are still in Y Inc.'s warehouse. What should be recorded as consolidated revenues for 2016 by Z Inc.? a. $435,000 b. $465,000 c. $510,000 d. $457,500

Z Inc. acquired 75% of the outstanding voting common stock ofY Inc. on January 1, 2016, for $350,00. At the end of 2016, Z Inc. reported revenues of $300,000 and Y Inc. reported revenues of $210,000. During 2016, Z Inc. sold inventory for $75,000 to Y Inc. which has paid only half of this purchase till the end of 2016. Also, 60% of these goods are still in Y Inc.'s warehouse. What should be recorded as consolidated revenues for 2016 by Z Inc.? a. $435,000 b. $465,000 c. $510,000 d. $457,500

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter8: Consolidated Tax Returns

Section: Chapter Questions

Problem 36P

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