Blue Company owns 80 percent of the common stock of White Corporation. During the year, Blue reported sales of $1,000,000, and White reported sales of $500,000, including sales to Blue of $80,000. The amount of sales that should be reported in the consolidated income statement for the year is:

A. $500,000.

B. $1,300,000.

C. $1,420,000.

D. $1,500,000.

Question

Business

Eve Pitts

6 March, 19:11

Blue Company owns 80 percent of the common stock of White Corporation. During the year, Blue reported sales of $1,000,000, and White reported sales of $500,000, including sales to Blue of $80,000. The amount of sales that should be reported in the consolidated income statement for the year is:

A. $500,000.

B. $1,300,000.

C. $1,420,000.

D. $1,500,000.

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Answers (1)

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Butterfinger · Answer 1

C. $1,420,000

Explanation:

Blue Company sales consolidated income statement for the year

Blue Sales of $1,000,000

White sales $500,000

Less sales to blue by white ($80,000)

Amount of sales to be reported $1,420,000

Therefore the amount of sales that should be reported in the consolidated income statement for the year is: $1,420,000