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Volley corporation owns an 80% interest in Basket corporation acquired several years ago. Basket regularly sells merchandise to experience at 125% of studies cost. Gross profit data for Volley and Basket for the year 2019 are as follows:   Volley Basket Sales 1,000,000 800,000 Cost of Goods Sold 800,000 640,000 Gross Profit 160,000 160,000 During 2019 Volley purchased inventory items from Basket and a transfer price of 400,000. Volley December 31 2018 and 2019 inventory include goods acquired from Basket of 100,000 and 125,000 respectively. The consolidated cost of goods sold of Volley and subsidiary for 2019 was: a. 1,024,000    b. 1,045,000    c. 1,052,800        d. 1,056,000

Volley corporation owns an 80% interest in Basket corporation acquired several years ago. Basket regularly sells merchandise to experience at 125% of studies cost. Gross profit data for Volley and Basket for the year 2019 are as follows:   Volley Basket Sales 1,000,000 800,000 Cost of Goods Sold 800,000 640,000 Gross Profit 160,000 160,000 During 2019 Volley purchased inventory items from Basket and a transfer price of 400,000. Volley December 31 2018 and 2019 inventory include goods acquired from Basket of 100,000 and 125,000 respectively. The consolidated cost of goods sold of Volley and subsidiary for 2019 was: a. 1,024,000    b. 1,045,000    c. 1,052,800        d. 1,056,000

Intermediate Accounting: Reporting And Analysis
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
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...
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Volley corporation owns an 80% interest in Basket corporation acquired several years ago. Basket regularly sells merchandise to experience at 125% of studies cost. Gross profit data for Volley and Basket for the year 2019 are as follows:

  Volley Basket
Sales 1,000,000 800,000
Cost of Goods Sold 800,000 640,000
Gross Profit 160,000 160,000

During 2019 Volley purchased inventory items from Basket and a transfer price of 400,000. Volley December 31 2018 and 2019 inventory include goods acquired from Basket of 100,000 and 125,000 respectively.

The consolidated cost of goods sold of Volley and subsidiary for 2019 was:

a. 1,024,000    b. 1,045,000    c. 1,052,800        d. 1,056,000

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