6-The separate income statements Hartford Corporation and its wholly owned subsidiary, Sacramento Co., for 2020 are presented below: Hartford Sacramento Sales Revenue $390,000 $68,250 Cost of Goods Sold 160,000 38,000 Gross Profit 230,000 30,250 Operating Expenses 80,000 16,000 Sacramento’s net income $ 14,250 Hartford's net income from its own operations $150,000 Note that Hartford’s income statement includes no investment-related accounting or adjustments for Sacramento. During 2020, Hartford sold merchandise costing $6,750 to Sacramento for $15,000. At the end of 2020, 40% of the merchandise remained unsold by Asbury. Required: Prepare a consolidated income statement for 2020.
6-The separate income statements Hartford Corporation and its wholly owned subsidiary, Sacramento Co., for 2020 are presented below:
|
|
Hartford |
Sacramento |
|
Sales Revenue |
$390,000 |
$68,250 |
|
Cost of Goods Sold |
160,000 |
38,000 |
|
Gross Profit |
230,000 |
30,250 |
|
Operating Expenses |
80,000 |
16,000 |
|
Sacramento’s net income |
|
$ 14,250 |
|
Hartford's net income from its own operations |
$150,000 |
|
Note that Hartford’s income statement includes no investment-related accounting or adjustments for Sacramento. During 2020, Hartford sold merchandise costing $6,750 to Sacramento for $15,000. At the end of 2020, 40% of the merchandise remained unsold by Asbury.
Required: Prepare a consolidated income statement for 2020.
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