Ram Company bought all the shares of Lal Company on January 1, Year 1 for 2,000,000. During that year Ram sold Lal for 80,000. inventory that had cost him $40,000. At the end of the period, LAL still had not sold the inventory to outsiders, but still owed Ram the $50,000. For that year, Ram has a balance of 550,000 in cost of goods sold and Lal of 150,000. What should be the total cost of goods sold presented in the consolidated statement of income and expenses? 650,000 700,000 660,000 640,000
Ram Company bought all the shares of Lal Company on January 1, Year 1 for 2,000,000. During that year Ram sold Lal for 80,000. inventory that had cost him $40,000. At the end of the period, LAL still had not sold the inventory to outsiders, but still owed Ram the $50,000. For that year, Ram has a balance of 550,000 in cost of goods sold and Lal of 150,000. What should be the total cost of goods sold presented in the consolidated statement of income and expenses? 650,000 700,000 660,000 640,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ram Company bought all the shares of Lal Company on January 1, Year 1 for 2,000,000. During that year Ram sold Lal for 80,000. inventory that had cost him $40,000. At the end of the period, LAL still had not sold the inventory to outsiders, but still owed Ram the $50,000. For that year, Ram has a balance of 550,000 in cost of goods sold and Lal of 150,000. What should be the total cost of goods sold presented in the consolidated statement of income and expenses?
650,000
700,000
660,000
640,000
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