Webb Co. acquired 100% of Rand Inc. on January 5, 2018. During 2018, 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 the year. 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. $15,040,000. c. $14,800,000. d. $15,400,000. e. $14,560,000.
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- Pepper bought 70% of Salt on 1 July 2016. The following are the statements of profit or loss of Pepper and Salt for the year ended 31 March 2017. Pepper Salt GHS’000 GHS’000 Revenue 31,200 10,400 Cost of sales (17,800) (5,600) Gross profit 13,400 4,800 Operating expenses (8,500) (3,200) Profit from operations 4,900 1,600 Investment income 2,000 Profit before tax 6,900 1,600 Tax…12. RS Inc. sold a total of $23,000 of its products. As of the end of the year, a total of $9,600 of these sales had still not yet been collected. The original cost of products sold was $8,100. n Transactio Transactio Cash Asset + n Noncash Assets Cash Asset + Balance Sheet Noncash Assets = II Liabil- ities Balance Sheet = 13. On December 13, 2020, RS Inc. signed a contract with the organizer of the International Fair for Electronic Consumer Products for 100 units of RS's smaller spray cans, which are intended to be given away to visitors of the trade show. The selling price specified in the contract is $5 per unit. RS Inc. promised to deliver the units on March 10, 2021. IFECP has up to 30 days after delivery to pay for the spray cans. II Contrib. Capital Liabil- ities + Contrib. Capital Earned Rev- Capital enues + Income Statement Earned Rev- Capital enues Expen ses Expen = ses II Income Statement Net Incom e Net = Incom e IIThe 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…
- The following information is related to Nash Company for 2020. Retained earnings balance, January 1, 2020 $901,600 Sales Revenue 23,000,000 Cost of goods sold 14,720,000 Interest revenue 64,400 Selling and administrative expenses 4,324,000 Write-off of goodwill 754,400 Income taxes for 2020 1,144,480 Gain on the sale of investments 101,200 Loss due to flood damage 358,800 Loss on the disposition of the wholesale division (net of tax) 404,800 Loss on operations of the wholesale division (net of tax) 82,800 Dividends declared on common stock 230,000 Dividends declared on preferred stock 73,600 Nash Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Nash sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year. (a1) New attempt is in…Paige, Inc. owns 80% of Sigler, Inc. During 2011, Paige sold goods with a 40% gross profit to Sigler. Sigler sold all of these goods in 2011. For the 2011 consolidated financial statements, how should the summation of Paige and Sigler income statement items be adjusted? a. Sales and cost of goods sold should be reduced by the intercompany sales. b. Sales and cost of goods sold should be reduced by 80% of the intercompany sales. c. Net income should be reduced by 80% of the gross profit on intercompany sales. d. No adjustment is necessary.Cayman Inc. bought 25% of Maya Company on January 1, 2022 for $800,000. The equity method of accounting was used. The book value and fair value of the net assets of Maya on that date were $2,100,000. Maya began supplying inventory to Cayman as follows: Year Cost to Maya Transfer Price Amount Held by Cayman at Year-End 2022$ 30,000 $ 45,000 $ 8,400 2023$ 48,000 $ 80,000 $ 20,000 Maya reported net income of $100,000 in 2022 and $120,000 in 2023 while paying $40,000 in dividends each year. What is equity in Maya income that should be recognized by Cayman in 2023? O $25,000 Ob $28,700 O $2,000 Od $31,300 e$30,000
- Rogue Industries reported the following items for the current year: Sales = $3,000,000; Cost of Goods Sold = $1,500,000; Depreciation Expense = $170,000; Administrative Expenses = $150,000; Interest Expense = $30,000; Marketing Expenses = $80,000; and Taxes = $300,000. Rogue's gross profit is equal to Select one: a. 1,070,000 b. $1,100,000 c. $1,500,000 d. $770,000The following information is related to Sheridan Company for 2020. Retained earnings balance, January 1, 2020 $999,600 Sales Revenue 25,500,000 Cost of goods sold 16,320,000 Interest revenue 71,400 Selling and administrative expenses 4,794,000 Write-off of goodwill 836,400 Income taxes for 2020 1,268,880 Gain on the sale of investments 112,200 Loss due to flood damage 397,800 Loss on the disposition of the wholesale division (net of tax) 448,800 Loss on operations of the wholesale division (net of tax) 91,800 Dividends declared on common stock 255,000 Dividends declared on preferred stock 81,600 Sheridan Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Sheridan sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year. (a1) Prepare a…Answer?
- 8. The following information is related to Diego Company for the year 2025. Cost of goods sold $260,000 Operating expenses Other revenues and gains 5,600 Net sales Unrealized gain on available-for-sale securities Gain on disposal of plastics division related to discontinued operations 15,000 Other expenses and losses. Loss on plastics division operations related to discontinued operations 130,000 440,000 9,600 $ 60,000 50,000 Prepare a multiple-step income statement and a comprehensive income statement for Diego Company (the two statement approach). The income tax rate is 30%, and the weighted-average number of common shares outstanding is 10,000.The following information is related to Crane Company for 2020. Retained earnings balance, January 1, 2020 $882,000 Sales Revenue 22,500,000 Cost of goods sold 14,400,000 Interest revenue 63,000 Selling and administrative expenses 4,230,000 Write-off of goodwill 738,000 Income taxes for 2020 1,119,600 Gain on the sale of investments 99,000 Loss due to flood damage 351,000 Loss on the disposition of the wholesale division (net of tax) 396,000 Loss on operations of the wholesale division (net of tax) 81,000 Dividends declared on common stock 225,000 Dividends declared on preferred stock 72,000 Crane Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Crane sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year. (a1) Prepare a…Correct answer