3) For consolidation purposes, what amount would be debited to cost of goods sold for the 2012/2013/2014 consolidation worksheet with regard to the unrealized gross profit of that year’s intra-entity transfer of merchandise?

4) For consolidation purposes, what amount would be debited to January 1 retained earnings for the 2012/2013/2014 consolidation worksheet entry with regard to the unrealized gross profit of the prior year’s intra-entity transfer (if any) of merchandise?
 

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Gargiulo Company, a 90% owned subsidiary of Posito Corporation, sells inventory to Posito at a 25% profit on selling price. The following data are available pertaining to intra-entity purchases. Gargiulo was acquired on January 1, 2012. 2013 $12,000 4,000 Gargiulo's net income Dividends paid by Gargiulo Purchases by Posito 2012 $8,000 1,200 Ending inventory on Posito's books Assume the equity method is used. The following data are available pertaining to Gargiulo's income and dividends. 2013 2014 2012 $70,000 $85,000 $94,000 10,000 10,000 15,000 2014 $15,000 3,000 Gargiulo Company, a 90% owned subsidiary of Posito Corporation, sells inventory to Posito at a 25% profit on selling price. The following data are available pertaining to intra-entity purchases. Gargiulo was acquired on January 1, 2012. 2013 $12,000 4,000 Gargiulo's net income Dividends paid by Gargiulo Purchases by Posito 2012 $8,000 1,200 Ending inventory on Posito's books Assume the equity method is used. The following data are available pertaining to Gargiulo's income and dividends. 2013 2014 2012 $70,000 $85,000 $94,000 10,000 10,000 15,000 2014 $15,000 3,000

Answer rating: 100% (QA)

3 answer 4 ANSWER As per the given question We will debit the cost of goods sold ... View the full answer