Parker Corp. owns 80% of Smith Inc.'s common stock. During Year 1, Parker sold Smith $250,000 of inventory on the same terms as sales made to third parties. Smith sold all of the inventory purchased from Parker in Year 1. The following information pertains to Smith and Parker's sales for Year 1:
Parker:
Sales $ 1,000,000
Cost of sales 400,000
Total $ 600,000
Smith:
Sales $ 700,000
Cost of sales $ 350,000
Total $ 350,000
What amount should Parker report as cost of sales in its Year 1 consolidated income statement?
a. $750,000
b. $680,000
c. $500,000
d. $430,000
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Parker Corp. owns 80% of Smith Inc.'s common stock. During Year 1, Parker sold Smith $250,000 of inventory on the same terms as sales made ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Smaller bags of items are generally lower priced per unit than larger bags
Answers (1)
Bolka Corporation, a merchandising company, reported the following results for October: Sales $ 413,000 Cost of goods sold (all variable) $ 169,100 Total variable selling expense $ 20,700 Total fixed selling expense $ 17,900 Total variable
Answers (1)
Monopolistic competition is similar to monopoly because A. in both industry structures, there are barriers to entry. B. in both industry structures, the firm's demand curve is downward sloping. C. both industry structures have many sellers. D.
Answers (1)
4. A US multinational corporation, consolidating the financial statements of foreign subsidiaries requires 2 steps. 1st the foreign subsidiary statements must be restated according to the U. S GAAP (Generally Accepted Accounting Principle). 2nd:
Answers (1)
Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. what is this called?
Answers (2)
New Questions in Business
Beswick company your team is allocated a project involving a major client, the beswick company. although the organization has many clients, this client, and project, is the largest source of revenue and affects the work of several other teams in the
Answers (1)
What is mean't by a focus group
Answers (2)
Manufacturers follow four steps to implement a manufacturing overhead allocation system. what is the first step?
Answers (1)
The budgeted production of Capricorn, Inc. is 13 comma 000 units per month. Each unit requires 40 minutes of direct labor to complete. The direct labor rate is $ 100.00 per hour. Calculate the budgeted cost of direct labor for the month.
Answers (1)
If the price level doubled in a 23-year period, we can conclude that the average annual rate of inflation over that period was about 3 percent. a) true b) false
Answers (1)