Question: why did we deduct 50000? During Year 1, Pard Corp. sold goods to its 80%-owned subsidiary, Seed Corp. At December 31, Year 1, one-half of

why did we deduct 50000?

During Year 1, Pard Corp. sold goods to its 80%-owned subsidiary, Seed Corp. At December 31, Year 1, one-half of these goods were included in Seed's ending inventory. Year 1 selling expenses were $1,100,000 and $400,000 for Pard and Seed, respectively. Pard's selling expenses included $50,000 in freight-out costs for goods sold to Seed. Pard did not charge Seed for these costs. What amount of selling expenses should be reported in Pard's Year 1 consolidated income statement? O O A. $1,450,000 (49%) B. $1,475,000 (16%) C. $1,480,000 (7%) D. $1,500,000 (26%)

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