Question

Select the correct answer for each of the following questions.
Blue Company purchased 60 percent ownership of Kelly Corporation in 20X1. On May 10,20X2, Kelly purchased inventory from Blue for $60,000. Kelly sold all of the inventory to an unaffiliated company for $86,000 on November 10, 20X2. Blue produced the inventory sold to Kelly for $47,000. The companies had no other transactions during 20X2.
1. What amount of sales will be reported in the 20X2 consolidated income statement?
a. $51,600.
b. $60,000.
c. $86,000.
d. $146,000.
2. What amount of cost of goods sold will be reported in the 20X2 consolidated income statement?
a. $36,000.
b. $47,000.
c. $60,000.
d. $107,000.
3. What amount of consolidated net income will be assigned to the controlling shareholders for 20X2?
a. $13,000.
b. $26,000.
c. $28,600.
d. $39,000.



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  • CreatedMay 23, 2014
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