Padre Company purchases inventory for $70,000 on Mar 19, 20X8 and sells it to Sonny Corporation for $95,000 on May 14, 20X8. Sonny still holds the inventory on December 31, 20X8, and determines that its market value (replacement cost) is $82,000 at that time. Sonny writes the inventory down from $95,000 to its lower market value of $82,000 at the end of the year. Padre owns 75 percent of Sonny. Based on the information given above, what amount of cost of goods sold should be eliminated in the consolidation worksheet for 20X8? PLEASE SHOW CALCULATION!

Padre Company purchases inventory for $70,000 on Mar 19, 20X8 and sells it to Sonny Corporation for $95,000 on May 14, 20X8. Sonny still holds the inventory on December 31, 20X8, and determines that its market value (replacement cost) is $82,000 at that time. Sonny writes the inventory down from $95,000 to its lower market value of $82,000 at the end of the year. Padre owns 75 percent of Sonny. Based on the information given above, what amount of cost of goods sold should be eliminated in the consolidation worksheet for 20X8? PLEASE SHOW CALCULATION!

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 13RE: Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a...

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