Gentry Inc. acquired 100% of Gaspard Farms on January 5, 2017. During 2017, Gentry sold Gaspard Farms $625,000 of goods, which had cost $425,000. Gaspard Farms still owned 12% of the goods at the end of the year. In 2018, Gentry sold goods with a cost of $800,000 to Gaspard Farms for $1,000,000, and Gaspard Farms still owned 10% of the goods at year-end. For 2018, the cost of goods sold totaled $5,400,000 for Gentry, and $1,200,000 for Gaspard Farms. What was consolidated cost of goods sold for 2018?
A. $5,625,000.
B. $6,604,000.
C. $5,596,000.
D. $5,620,000.
E. $6,600,000.
Answer: C
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A) triple bottom line B) whole company concept C) value chain D) downstream cost
Within the company situation analysis, what step must be done right before the conclusion concerning competitive position?
a. assessment of competitive strength and identification of competitive advantage b. assessment of the present strategy based on performance c. determination of the issues and problems that need to be addressed d. SWOT analysis
On January 1, the Rodrigues Corporation leased some equipment on a 3-year lease, paying $15,000 at the inception of the lease, and $15,000 per year each December 31. The lease is considered to be an operating lease. Prepare the general journal entry to record the first lease payment on December 31.
What will be an ideal response?
U.S. GAAP requires that the completed contract method be used
a. when uncertainty obscures the total costs the contractor will incur in carrying out the project. b. in situations when a firm has not found a specific buyer while construction progresses. c. always to recognize income during construction projects. d. in both circumstances a and b. e. in none of the above situations.