Give true answer Fan Co holds 80% of the common stock of Pen Co.During 2010, Fan reported sales of $2,460,000 and acost of goods sold of $1,000,000. For this sameperiod, Pen had sales of $670,000 and a cost of goodssold of $320,000.Included in the amounts for Fan's sales were Fan'ssales of merchandise to Pen for $250,000. There wereno sales from Pen to Fan. Intra-entity sales had thesame mark-up as sales to outsiders. Pen still had 30%of the intra-entity sales as inventory at the end of2010.What are the consolidated sales and cost of goodssold for 2010?

Step 1: Define Intra-entity TransactionsIntra-entity transactions take place between the holding…

Answered: Fan Co holds 80% of the common stock of…

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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