The following data were provided by the accountants of the home office and branch for the...

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The following data were provided by the accountants of the home office and branch for the year ended December 31, 2015: Net sales to outside customer Beginning inventory Net purchases from outsider Shipment to branch Shipment from Home office Ending inventory Operating expenses Additional notes: Home office books Branch Book 1,000,000 800,000 300,000 140,000 800,000 250,000 400,000 500,000 100,000 200,000 200,000 100,000 M The current income tax rate is 30% It is the policy of the company to use the specific identification for its inventory For the year ended December 31, 2015, the home office bills its branch with a gross profit rate of 40% based on cost Half of the beginning inventory of the branch was acquired from outsider The ending inventory of the branch is broken down as follows: 60% from outside supplier 26% from 2015 shipment from home office 14% from 2014 shipment from home office What is the combined net income to be presented by the home office in its statement of comprehensive income for the year ended December 31, 2015? The following data were provided by the accountants of the home office and branch for the year ended December 31, 2015: Net sales to outside customer Beginning inventory Net purchases from outsider Shipment to branch Shipment from Home office Ending inventory Operating expenses Additional notes: Home office books Branch Book 1,000,000 800,000 300,000 140,000 800,000 250,000 400,000 500,000 100,000 200,000 200,000 100,000 M The current income tax rate is 30% It is the policy of the company to use the specific identification for its inventory For the year ended December 31, 2015, the home office bills its branch with a gross profit rate of 40% based on cost Half of the beginning inventory of the branch was acquired from outsider The ending inventory of the branch is broken down as follows: 60% from outside supplier 26% from 2015 shipment from home office 14% from 2014 shipment from home office What is the combined net income to be presented by the home office in its statement of comprehensive income for the year ended December 31, 2015?

Answer rating: 100% (QA)

Branch beginning inventory 15000 Half was from outside supplier 7500 Other half was from 2014 shipme... View the full answer