Basil acquired 60% of Parsley on 1 March 20X9. In September 20X9 Basil sold $46,000 worth of goodsto Parsley. Basil applies a 30% mark-up to all its sales. 25% of these goods were still held in inventoryby Parsley at the end of the year.An extract from the draft statements of profit or loss of Basil and Parsley at 31 December 20X9 is:Parsley$421,500Basil$955,000RevenueCost of sales(407,300)547,700(214,600)206,900Gross profitAll revenue and costs arise evenly throughout the year.What will be shown as gross profit in the consolidated statement of profit or loss of Basil for the year ended31 December 20X9?

We have the following information: Basil acquired 60% of Parsley on 1 March 20X9 In September 20X9…

Basil acquired 60% of Parsley on 1 March 20X9. In September 20X9 Basil sold $46,000 worth of goods to Parsley. Basil applies a 30% mark-up to all its sales. 25% of these goods were still held in inventory by Parsley at the end of the year. An extract from the draft statements of profit or loss of Basil and Parsley at 31 December 20X9 is: Basil $ 955,000 Parsley $ 421,500 Revenue Cost of sales (407,300) 547,700 (214,600) 206,900 Gross profit All revenue and costs arise evenly throughout the year. What will be shown as gross profit in the consolidated statement of profit or loss of Basil for the year ended 31 December 20X9?

Basil acquired 60% of Parsley on 1 March 20X9. In September 20X9 Basil sold $46,000 worth of goods to Parsley. Basil applies a 30% mark-up to all its sales. 25% of these goods were still held in inventory by Parsley at the end of the year. An extract from the draft statements of profit or loss of Basil and Parsley at 31 December 20X9 is: Basil $ 955,000 Parsley $ 421,500 Revenue Cost of sales (407,300) 547,700 (214,600) 206,900 Gross profit All revenue and costs arise evenly throughout the year. What will be shown as gross profit in the consolidated statement of profit or loss of Basil for the year ended 31 December 20X9?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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