Global Corporation acquired 85 percent of Local Company's voting shares of stock in 20X7. During 20X8, Global purchased 50,000 picture tubes for $15 each and sold 28,000 of them to Local for $20 each. Local sold all of the units to unrelated entities prior to December 31, 20X8, for $30 each. Both companies use perpetual inventory systems.
Which worksheet consolidating entry is needed in preparing consolidated financial statements for 20X8 to remove all effects of the intercompany sale?

A.	Sales	560,000
	Cost of Goods Sold		560,000
B.	Sales	650,000
	Cost of Goods Sold		650,000
C.	Cost of Goods Sold	560,000
	Sales		560,000
D.	Cost of Goods Sold	650,000
	Sales		650,000

Answer rating: 100% (QA)

A Sales 560000 Cost of Goods Sold 560000 Since ... View the full answer