Real corp. had the following transactions with affiliated parties during year 1: Sales of 60,000 to Arman, Inc., with 20,000 gross profit. Arman corp. had 15,000 of this inventory on hand at year-end. Real corp. owns a 15% interest in Arman corp. and does not exert significant influence. Purchases of raw materials totaling 420,000 from Pearson Corp., a wholly owned subsidiary. Pearson's gross profit on the sale was 48,000. Real had 60,000 of this inventory remaining on December 31, year 1. Before eliminating entries, Real had consolidated current assets of 320,000. What amount should Real corp. report in its December 31, 2018 consolidated balance sheet for current assets?

Answer rating: 100% (QA)

Answer To determine the amount Real Corp should report in its December 31 2018 consolidated balance ... View the full answer