Parent company sells merchandise to Sub company for $10,000, the merchandise cost Parent company $7,000. Sub company

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Parent company sells merchandise to Sub company for $10,000, the merchandise cost Parent company $7,000. Sub company sells the merchandise to an outside third party for $12,000. Parent company owns 80% of sub.

(a) What is the gross profit ratio?

(b) What profit does the parent receive?

Related Book For answer-question

Advanced Financial Accounting

ISBN: 978-0137030385

6th edition

Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay

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Posted Date: Jan 06, 2021 01:41 PM

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Parent company sells merchandise to Sub company for $10,000, the merchandise cost Parent company $7,000. Sub company

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Answer 1 Gross Profit ratio Parent Gross Profit Sales 3000 10... View the full answer

Advanced Financial Accounting

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