Question: Use the following facts for Multiple Choice problems 22-25. Assume a parent company owns a 100% controlling interest in its long-held subsidiary. The following excerpts
Use the following facts for Multiple Choice problems 22-25. Assume a parent company owns a 100% controlling interest in its long-held subsidiary. The following excerpts are from the parent's and subsidiary's pre-consolidation financial statements and the consolidated financial statements for the year ending December 31, 2022: The parent sold inventories to the subsidiary during both 2021 and 2022 . For these sales to the subsidiary. the parent earns a gross profit of 35%. 22. Intercompany inventory transactions What is the amount of intercompany sales between the parent and subsidtary during the year ending December 31, 2022? a. $711.600 c. $1,896,000 b. 5720,000 d. 52,184,000 23. Intercompany inventory transactions What is the amount of parent-company profit from intercompany inventory transactions that was in the subsidiary's ending inventory on December 31, 2022 ? a. $16,800 b. $37,800 c. $25,200 d. $54,600 24. Intercompany inventory transactions What is the amount of parent-company profit from intercompany inventory transactions that was in the subsidiary's berginning inventory on January 1,2022? a. $16,8000 b. $25,200 C. 537,8000 a. Not enough information 25. Intercompany inventory tranouctions What is the amount of inlercompany transuctions between the parent and subsidiary that remained unpaid at December 31, 2022 ? a. $38,400 b. $25,200 c 516,800 a. $,400
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