20. Presley Inc. acquired a 60% interest in Jackson enterprises several years ago during your 10 Jackson sold inventory costing $160,000 to Presley for $200,000. A total of 18% of the inventory was not sold to outsiders until your 11 during your 11 Jackson sold inventory costing $297,500 to Presley for $350,000. A total of 30% of the inventory outsiders until year 11 during your 11 Jackson sold inventory costing $297,500 to Presley for $350,000. A total of 30% of the inventory was not sold to outsiders until you're 12 and your 11 Presley reported cost of goods sold of $607,500. All Jackson reported $450,000. What is the consolidated cost of goods sold for your 11? a. $716,050 b. $698,950 c. $1,066,050

20. Presley Inc. acquired a 60% interest in Jackson enterprises several years ago during your 10 Jackson sold inventory costing $160,000 to Presley for $200,000. A total of 18% of the inventory was not sold to outsiders until your 11 during your 11 Jackson sold inventory costing $297,500 to Presley for $350,000. A total of 30% of the inventory outsiders until year 11 during your 11 Jackson sold inventory costing $297,500 to Presley for $350,000. A total of 30% of the inventory was not sold to outsiders until you're 12 and your 11 Presley reported cost of goods sold of $607,500. All Jackson reported $450,000. What is the consolidated cost of goods sold for your 11? a. $716,050 b. $698,950 c. $1,066,050

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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P Inc. owns a 60% interest in S Corp. During 2020 S sold inventory costing $160,000 to P for $200,000. A total of 18 percent of this inventory was not sold to outsiders until 2021. During 2021 S sold inventory costing $297,500 to P for $350,000. A total of 30 percent of this inventory was not sold to outsiders until 2022. In 2021 P reported the cost of goods sold of $607,500 while S reported $450,000. What is the consolidated cost of goods sold in 2021?
In 20X6, Vines Inc. (Vines) purchased 40% of the common shares of Bottles Inc. (Bottles). At the time, there were no fair value differentials. In 20X7, Vines sold inventory to Bottles for $80,000. $25,000 of this remained at year end. This inventory was sold by Bottles in 20X8. Also during 20X8, Vines sold additional inventory to Bottles for $60,000 of which $30,000 remains in inventory. Vines earns a gross profit of 30% on sales of its inventory. Both companies pay income taxes at 25%. During 20X8, Bottles earned net income of $200,000. What is the amount of equity income reported by Vines in 20X8? A. $79,400 B. $79,550 C. $80,000 D. $80,450
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Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago. During 2017, Skybox sold inventory costing $160,000 to Parkette for $200,000. A total of 18 percent of this inventory was not sold to outsiders until 2018. During 2018, Skybox sold inventory costing $297,500 to Parkette for $350,000. A total of 30 percent of this inventory was not sold to outsiders until 2019. In 2018, Parkette reported cost of goods sold of $607,500 while Skybox reported $450,000. What is the consolidated cost of goods sold in 2018? $698,950 $720,000 $1,066,050 $716,050
Choose the correct. Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago. During 2017, Skybox sold inventory costing $160,000 to Parkette for $200,000. A total of 18 percent of this inventory was not sold to outsiders until 2018. During 2018, Skybox sold inventory costing $297,500 to Parkette for $350,000. A total of 30 percent of this inventory was not sold to outsiders until 2019. In 2018, Parkette reported cost of goods sold of $607,500 while Skybox reported $450,000. What is the consolidated cost of goods sold in 2018?a. $698,950b. $720,000c. $1,066,050d. $716,050
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