Question: In 2 0 2 3 , A Ltd . sold merchandise to its subsidiary, B Company, for $ 8 0 , 0 0 0 at

2023,

A Ltd

.

sold merchandise to its subsidiary, B Company, for $

80, 000

at a gross profit rate of

30 % .

B Company was able to sell

60 %

of the merchandise to outsiders by the end of the fiscal period. What effect does this intercompany transaction have on consolidated cost of goods sold?

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