On January 1, 2020, Gardner bought 85% of Isbell. Gardner saw that there was an unrecorded asset on its accounting records that is valued at $71,000 and has 5 years remaining life. All excess fair value over book value was denoted as goodwill. During 2021, Isbell sold inventory to Gardner for $227,000 that cost $188,000, and of this amount, 30% remained unsold in Gardner’s ending inventory on December 31, 2021. Selected financial information for Gardner and Isbell on December 31, 2021: Gardner Isbell Inventory 685,000 475,000 Sales 1,275,000 983,000 COGS 705,000 545,000 Operating expenses 338,000 395,000 What is the value of the consolidated COGS?
On January 1, 2020, Gardner bought 85% of Isbell. Gardner saw that there was an unrecorded asset on its accounting records that is valued at $71,000 and has 5 years remaining life. All excess fair value over book value was denoted as goodwill. During 2021, Isbell sold inventory to Gardner for $227,000 that cost $188,000, and of this amount, 30% remained unsold in Gardner’s ending inventory on December 31, 2021. Selected financial information for Gardner and Isbell on December 31, 2021: Gardner Isbell Inventory 685,000 475,000 Sales 1,275,000 983,000 COGS 705,000 545,000 Operating expenses 338,000 395,000 What is the value of the consolidated COGS?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2020, Gardner bought 85% of Isbell. Gardner saw that there was an unrecorded asset on its accounting records that is valued at $71,000 and has 5 years remaining life. All excess fair value over book value was denoted as
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