Selected information from the separate and consolidated balance sheets and income statements of Gold corp. and its
Question:
Selected information from the separate and consolidated balance sheets and income statements of Gold corp. and its subsidiary, Silver Inc., as of December 31, 2017, and for the year then ended is as follows: Gold Silver Consolidated Balance sheet accounts Accounts receivable 52,000 38,000 78,000 Inventory 60,000 50,000 104,000 Income statement accounts Revenues 400,000 280,000 616,000 Cost of goods sold 300,000 220,000 462,000 Gross profit 100,000 60,000 154,000 Additional Information During year 2018, Pierce Inc. sold goods to its 80%-owned subsidiary, Goat Inc. On December 31, 2018, one-half of these goods were included in Goat's ending inventory. Reported in year 2018 selling expenses were 1,100,000 and 400,000 for Pierce Inc. & Goat Inc., respectively. Pierce's selling expenses included 50,000 in freight-out costs for goods sold to Goat. What amount of selling expenses should be reported in Pierce Inc 2018 consolidated income statement?
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker