Parent own 90% of subsidiary parent sales include 15,000 intercompany sales to its subsidiary. The sale includes

Fantastic news! We've Found the answer you've been seeking!

Question:

Parent own 90% of subsidiary parent sales include 15,000 intercompany sales to its subsidiary. The sale includes a profit of 6,250.

40% of goods from intercompany sales was not sold

thus, the cost of sales is

Select one:

a. $ 6250

b. $ 8750

c. $ 15,000

d. $ 10,000

Related Book For answer-question

Modern Advanced Accounting in Canada

ISBN: 978-1259087554

7th edition

Authors: Hilton Murray, Herauf Darrell

See More Books

Posted Date: Jun 08, 2022 06:27 AM

See More Questions

A parent holding company sells shares in its subsidiary such that the parent now owns only 65% of the subsidiary and, thus, the tax returns of the parent and its subsidiary can't be consolidated. The...
A subsidiary sold an old, abandoned plant to its parent and incurred a loss of $10 million. Can this loss be reported on the subsidiary-only income statement as an extraordinary item?
Parent Corporation owns 100% of Subsidiary Corporations single class of stock and $2 million of Subsidiary debentures . Parent purchased the debentures in small blocks from various unrelated parties...
What are the four different elements of advertising? Are all of them appropriate to an average retailer in most markets?
Tom Hall has worked for Dr. Johnson for several years. Tom demonstrates a loyalty that is rare among employees. He is always willing to cover for other employees and hasnt taken a vacation in three...
Beta Corporation received permission to change its tax year from a calendar year to a year ending August 31. Its income for the eight months ending August 31 is $96,000. What is Beta Corporation's...
The income statement and additional data of Vitamins Plus, Inc., follow: Additional data: a. Acquisition of plant assets is $ 1 1 6,000. Of this amount, S 1 0 1 ,000 is paid in cash and $$15,000$...
During the time frame that Intel was making exclusivity payments to Dell, Dells business model was being adversely affected by the increasingly competitive nature of the PC industry. What...
a) Calculate the future value of a regular annuity that requires monthly instalments for 7 years at an annual interest rate of 3.19%. For the first 4 years the monthly payments are $800 and for the...
1. If you were in Jimmies shoes, would you sell Greg an equity stake in Lees Ice Cream? Explain. If Jimmie does sell equity to Greg for $3,300, what percentage of the business should he offer? 2....
don't quite understand. Please show formulas. Question 3 1 / 1 point GEMTECH Ltd. is an engineering construction company. It purchased an excavator for $200 000 in 1999 and a bulldozer for $180 000...
Sheffield Corporation's December 31, 2025, trial balance includes the following accounts: Investment in Starling Common Stock, $65,000; Retained Earnings, $147,000; Treasury Stock, $5,000;...
International Genetic Technologies (InGen) and The Resources Development Association (RDA) are companies involved in cutting- edge genetics research. Selected financial data for (InGen) and (RDA) are...
Watch the Compound Interest Trap of Credit Cards and Loans video. youtube watch a video and then answer five questions. You will also write a one-paragraph reflection on your attitude and...
What is emotional intelligence and why is it important in leadership? Provide a successful and unsuccessful example of when a leader applied emotional intelligence? What was the outcome?
The College was created in 1965 and the computer network came in the mid-1970's; it was a mainframe-based star network with a centralized mainframe computer supporting all of CUNY colleges. In the...
you will act as top management team member justify why you choose ecomotion motors and give a detail explanation why it should expand in Japan by relying on concepts learnt in the class...
What key concerns must functional tactics address in marketing? Finance? POM? Personnel?
The realization of intercompany inventory and depreciable asset profits is really an adjustment made in the preparation of consolidated income statement s to arrive at historical cost numbers....
Purple Company purchased a 70% interest in Sand Company several years ago in order to obtain retail outlets for its major products. Since that time, Purple has sold to Sand a substantial portion of...
Differentiate between the accounting for a fair value hedge and a cash flow hedge.
Refer to the financial statements of Best Buy in Appendix A near the end of the book. Look at the cad consolidated statements of earnings (income statement).How many years are included and what are...
Accounting is an information and measurement system that ____________information about an organizations business activities. a. Translates b. Records c. Chooses d. Prints out
External users of financial information include: a. Purchasing managers b. Service managers c. The chief executive officer d. Lenders

Parent own 90% of subsidiary parent sales include 15,000 intercompany sales to its subsidiary. The sale includes

Question:

Expert Answer:

STATEMENT SHOWING CALCULATION OF C... View the full answer

Modern Advanced Accounting in Canada

Students also viewed these accounting questions