Alpha Company owns 80 percent of the voting stock of Beta Company. Alpha and Beta reported the following account information from their year-end separate financial records: Alpha Beta Inventory $95,000 $88,000 Sales Revenue 800,000 300,000 Cost of Goods Sold 600,000 180,000 During the current year, Alpha sold inventory to Beta for $100,000. As of year end, Beta had resold only 60 percent of these intra-entity purchases. Alpha sells inventory to Beta at the same markup it uses for all of its customers. What is the total for consolidated sales revenue?

Q: Corn Corporation purchased inventory from Beef Corporation for P 120,000 on September 20, 2012, and…

A: Here are the cases to be recorded in the consolidated financial statements.

Q: Tookey Ltd sold inventory items (with a cost of $75 000) to its parent Milky Ltd for $135 000. One…

A: In  case one company overtake the assets and liabilities of another company, then accounting for…

Q: P CO owns a 90% interest in S Co, purchased at a time when the book values of S recorded assets and…

A: Parent company is the company which acquires shares in another company known as subsidiary company.…

Q: Cattle Company sold inventory with a cost of $40,000 to its 90%-owned subsidiary, Range Corp., for…

A: Lets understand the basics. When inter company transaction of inventory is made between the parent…

Q: Required: Compute consolidated net income and income assigned to the controlling interest for 20X2,…

A: The consolation is the accounting process in which the financial results of the parent company and…

Q: 4. Pate Corp. owns 80% of Strange Inc.’s common stock. During 20X1, Pate sold inventory to Strange…

A: Cost of sales refers to the amount paid for the purchase of inventory of goods that should be sold…

Q: Paloma, Inc., owns 90 percent of Blanca Corporation. Both companies have been profitable for many…

A: Deferred tax assets seem to be items that can be utilized for future tax reduction. Typically, this…

Q: P CO owns a 90% interest in S Co, purchased at a time when the book values of S recorded assets and…

A: SOLUTION- INTER COMPANY TRANSACTION ARE TRANSACTIONS INCUR BETWEEN THE PARENT AND SUBSIDIARY COMPANY…

Q: ck of LL Co. During 20x2, KK reported sales of P1,120,000 and cost of goods sold of P840,000. For…

A: Consolidated sales refer to the compiled sales of a company with its subsidiaries as well.

Q: P CO owns a 90% interest in S Co, purchased at a time when the book values of S recorded assets and…

A: Intercompany Sales means sale between parent company and subsidiary company. Parent company is the…

Q: Planner Corporation owns 60 percent of Schedule Company’s voting shares. During 20X3, Planner…

A: Ending inventory: Sales = (14,000 x $108) – (9,000 x $108) = $1,512,000 – $972,000 = $540,000 Cost…

Q: Sharpe electronics corp holds a 75% stake in worldwide electronics corp. On Oct 29, 20x4, from a…

A: Realized Income can be defined as that portion of income that is completely under the control of a…

Q: Lake acquired a controlling interest in Boxwood several years ago. During the current fiscal period,…

A: Income tax payable is the percent of tax applicable on the taxable income. Income tax payable is…

Q: What amount of sales will be reported in the 20x2 consolidated income statement?

A: Consolidated revenue is the amount of sale of goods to the customers.

Q: P CO owns a 90% interest in S Co, purchased at a time when the book values of S recorded assets and…

A: Intercompany sales means sales between two companies, in which one company is parent company and…

Q: Silver Corporation owns 80 percent of Billy Company's stock. At the end of 20X8, Silver and Billy…

A: Cost of goods sold (COGS) is a section on an income statement that shows the expenses a company…

Q: Cổ. owns 90 percent of the voting common shares of Bison Co. During 2022, Hodge had sales of $1.12…

A: The "direct cost" associated with the production of any products or services is measured by the Cost…

Q: Bisharp Corporation owns 80% of Rufflet, Inc. common stock. During 20A, Bisharp sold to Rufflet…

A: Income Statement It is a statement that shows all the expenses and incomes of reoccurring nature…

Q: Goddy Company owns 80% of the common stock of Morris, Inc. In the current year, Goddy reports sales…

A: Consolidated cost of goods which are sold comes after adding the cost of goods sold of subsidiary…

Q: K owns 80% of T’s common stock.  During October T sold merchandise to K for $250,000.  On December…

A: Ending inventory with Parent company = Total inventory sold x 40% = $250000 x 40% = $100,000

Q: Lake acquired a controlling interest in Boxwood several years ago. During the current fiscal period,…

A: Income tax payable is the amount which is to be paid to the government after applying the tax rate…

Q: Brooks owns 20% of Ghost Inc. The following information pertains to an intra entity transfer. What…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Sweeny Corporation owns 60 per cent of Bitner Company's shares. Partial 20X2 financial data for the…

A: Solution An intercompany transaction is one between a parent company and its subsidiaries or other…

Q: Par Inc owns 77.11% of Sub Corp. During the year, Par sold inventory to Sub for $79,271. Exactly…

A: When the companies hold ownership in some other companies and then due to nature of business sells…

Q: Lake acquired a controlling interest in Boxwood several years ago. During the current fiscal period,…

A: Income tax payable is the amount which is to be paid to the government after applying the tax rate…

Q: Hodge Co. owns 90 percent of the voting common shares of Bison Co. During 2022, Hodge had sales of…

A: Introduction Intercompany upstream sale of inventory occurs, the effect of this transaction is…

Q: Paneer owns 30% of Lassi and has done so for many years. During the year ended 31 December 20X1,…

A: Lassi sold inventory of 1 million at 50% mark up  out of which 40% is still in stock cost of…

Q: P CO owns a 90% interest in S Co, purchased at a time when the book values of S recorded assets and…

A: In case of intercompany sales, unrealised profits needs to be allocated between controlling interest…

Q: How much is the share in the profit of associate in 20x1?

A: In this case the share in the profit of associate would be calculated as share in profit of…

Q: Lake acquired a controlling interest in Boxwood several years ago. During the current fiscal period,…

A: Income tax payable is the amount which is to be paid to the government after applying the tax rate…

Q: Lake acquired a controlling interest in Boxwood several years ago. During the current fiscal period,…

A: Income tax payable is the amount which is to be paid to the government after applying the tax rate…

Q: S Corporation, an 80%-owned subsidiary of P Corporation, sold inventory items to its parent at a…

A: The non controlling interest is the share of income for minority shareholders.

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.