Washington Corp. acquired 70% of the voting common stock of George Co. at the time when George Corp's book values and fair values were equal. Separate income of Washington and George Co. for 2020 are as follos: Washington Corp George Co. Sales 700,000 400,000 COGS 400,000 200,000 OPEX 120,000 100,000 Separate Income 180,000 100,000 Intercompany Sales from Washington to George for 2019 and 2020 summarized as follows: Selling Unsold at year End Cost Price Intercompany Sales-19 250,000 390,000 40% Intercompany Sales-20 175,000 275,000 50% The consolidated income statement will show COGS of:
Washington Corp. acquired 70% of the voting common stock of George Co. at the time when George Corp's book values and fair values were equal. Separate income of Washington and George Co. for 2020 are as follos:
Washington Corp George Co.
Sales 700,000 400,000
COGS 400,000 200,000
OPEX 120,000 100,000
Separate Income 180,000 100,000
Intercompany Sales from Washington to George for 2019 and 2020 summarized as follows:
Selling Unsold at year End
Cost Price
Intercompany Sales-19 250,000 390,000 40%
Intercompany Sales-20 175,000 275,000 50%
The consolidated income statement will show COGS of:
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
