I want to correct answer accounting Webb Co. acquired 100% of Rand Inc. on January 5, 2018. During2018, Webb sold goods to Rand for $2,400,000 that cost Webb$1,800,000. Rand still owned 40% of the goods at the end of theyear. Cost of goods sold was $10,800,000 for Webb and$6,400,000 for Rand. What was consolidated cost of goods sold?a. $17,200,000.b. $15,160,000.c. $14,800,000.d. $15,400,000.e. $14,560,000.

Step 1: Define Cost Of Goods SoldThe cost of goods sold means the cost of the products which are…

Answered: Webb Co. acquired 100% of Rand Inc. on…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Perry, Inc. owns a 90% interest in Brown Corp. During 20X6, Brown sold $100,000 in merchandise to Perry at a 30% gross profit. Ten percent of the goods are unsold by Perry at year end. The noncontrolling interest will receive what gross profit as a result of these sales? a. $0 b. $2,700 c. $3,000 d. $27,000
Company Big owns 80% of Company Small. Their separate statements of profit or loss for the financial year ended on 31 December 2021 are as follows: Big (€) Small (€) Sales revenue 800,000 500,000 Cost of sales 560,000 300,000 Gross profit 240,000 200,000 During the year 2021 Co Big sold goods to Co small for €150,000. These goods had cost Co Big €120,000. What amounts are reported on the consolidated statement of profit or loss for the year ended 31 December 2021 for the group if all the goods were still in the inventory of Small Co at the year-end: Sales revenue ["1,180,000", "1,040,000", "1,300,000", "1,150,000"] Cost of sales ["740,000", "710,000", "860,000", "688,000"] Gross profit ["470,000", "440,000", "352,000", "410,000"]
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The following information is related to Dickinson Company for 2020. Retained earnings balance, January 1, 2020 $ 980,000 Sales revenue 25,000,000 Cost of goods sold 16,000,000 Interest revenue 70,000 Selling and administrative expenses 4,700,000 Write-off of goodwill 820,000 Income taxes for 2020 1,244,000 Gain on the sale of investments 110,000 Loss due to flood damage 390,000 Loss on the disposition of the wholesale division (net of tax) 440,000 Loss on operations of the wholesale division (net of tax) 90,000 Dividends declared on common stock 250,000 Dividends declared on preferred stock 80,000 Dickinson Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Dickinson sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year. Instructions Prepare a multiple-step income statement…
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2. Martindale Company, a 100% owned subsidiary of Weisman Corporation, sells inventory to Weisman at a 20% profit on selling price. The following data are available pertaining to inter-company purchases by Weisman: Inter-company sales: Unsold at year end (based on selling price): 2020: $18,000 2020: $4,000 2021: $19,400 2021: $6,000 2022: $21,500 2022: $8,000 Martindale's profit numbers were $125,000, $142,000 and $265,000 for 2020, 2021, and 2022, respectively. Weisman received dividends from Martindale of $25,000 for 2020 and 2021, and $30,000 for 2022. Assume Weisman uses the equity method to account for its investment in Martindale. What is the balance in pre-consolidation Income (loss) from subsidiary for 2022? Select one: A. $268,600 B. $235,000 C. $265,400 D. $264,600

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