Question: During 2011, Pard Corp. sold goods to its 80%-owned subsidiary, Seed Corp. At December 31, 2011, one-half of these goods were included in Seeds ending

During 2011, Pard Corp. sold goods to its 80%-owned subsidiary, Seed Corp. At December 31, 2011, one-half of these goods were included in Seed’s ending inventory. Reported 2011 selling expenses were $1,100,000 and $400,000 for Pard and Seed, respectively. Pard’s selling expenses included $50,000 in freight-out costs for goods sold to Seed.

What amount of selling expenses should be reported in Pard’s 2011 consolidated income statement?

a. $1,500,000

b. $1,480,000

c. $1,475,000

d. $1,450,000

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