Pepper Corporation owns 75 percent of Salt Company's voting shares. During 20X8, Pepper produced 50,000 chairs at a cost of $79 each and sold 35,000 chairs to Salt for $90 each. Salt sold 18,000 of the chairs to unaffiliated companies for $117 each prior to December 31, 20X8, and sold the remainder in early 20X9 to unaffiliated companies for $130 each. Both companies use perpetual inventory systems. Based on the information given above, what amount of cost of goods sold must be eliminated from the consolidated income statement for 20X8? Multiple Choice A. $2,963,000 B. $1,620,000 C. $2,765,000 D. $1,422,000

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A: In  case one company overtake the assets and liabilities of another company, then accounting for…

Q: On January 1, 2012, Jackson Enterprises opened its doors. Jackson uses the first-in, first-out…

A: Please find the answer to the above question below:

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A: Calculation of Goodwill :        An explanation is given below in step 2 :

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A: Lets understand the basics. When inter company transaction of inventory is made between the parent…

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A: Answer:- Journal entry meaning:- In accounting, a journal entry is a documentation of deal or…

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A: The consolation is the accounting process in which the financial results of the parent company and…

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A: Cost of sales refers to the amount paid for the purchase of inventory of goods that should be sold…

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Q: 13. Gibson Corp. owned a 90% interest in Sparis Co. Sparis frequently made sales of inventory to…

A: Non-controlling interest refers to the portion of a subsidiary's equity ownership that is not held…

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A:

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A: Ending inventory with Parent company = Total inventory sold x 40% = $250000 x 40% = $100,000

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.