Nasty is a wholly owned subsidiary of Ugly. Inventories in their individual statements of financial position at the year end are shown as: Ugly $40,000 Nasty $20,000 Sales by Ugly to Nasty during the year were invoiced at $15,000 which included a profit by Ugly of 25% on cost. Two thirds of these goods were included in inventories at the year end. At what value should inventories appear in the consolidated statement of financial position?
Nasty is a wholly owned subsidiary of Ugly. Inventories in their individual statements of financial position at the year end are shown as: Ugly $40,000 Nasty $20,000 Sales by Ugly to Nasty during the year were invoiced at $15,000 which included a profit by Ugly of 25% on cost. Two thirds of these goods were included in inventories at the year end. At what value should inventories appear in the consolidated statement of financial position?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Nasty is a wholly owned subsidiary of Ugly. Inventories in their individual statements of financial
position at the year end are shown as:
Ugly $40,000
Nasty $20,000
Sales by Ugly to Nasty during the year were invoiced at $15,000 which included a profit by Ugly of
25% on cost. Two thirds of these goods were included in inventories at the year end.
At what value should inventories appear in the consolidated
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