Perth Corporation owns 90 percent of Dundee Company's stock. At the end of 20X8, Perth and Dundee reported the following partial operating results and inventory balances:

	Perth Corporation	Dundee Company
Total sales	$500,000	$350,000
Sales to Dundee Company	100,000
Sales to Perth Corporation		150,000
Net income		15,000
Operating income (excluding investment income from Dunde)	56,000
Inventory on hand, December 31, 20X8, purchased from:
Dundee Company	36,000
Perth Corporation		31,000

Perth regularly prices its products at cost plus a 30 percent markup for profit. Dundee prices its sales at cost plus a 10 percent markup. The total sales reported by Perth and Dundee include both intercompany sales and sales to nonaffiliates.

Based on the information given above, what balance will be reported for inventory in the consolidated balance sheet for December 31, 20X8?

a. $56,573

b. $23,846

c. $32,727

d. $67,000

Answer rating: 100% (QA)

Inventory of Dundee company without profit 3100... View the full answer