Gargiulo Company, a 90% owned subsidiary of Posito Corporation, transfers inventory to Posito at a 25% gross profit rate. The following data are available pertaining specifically to Posito's intra-entity purchases from Gargiulo. Gargiulo was acquired on January 1, 2017. 201720182019Purchases by Posito$8,000 $12,000 $15,000 Ending inventory on Posito's books 1,200 4,000 3,000 ??Assume the equity method is used. The following data are available pertaining to Gargiulo's income and dividends.? 201720182019Gargiulo's net income$70,000 $85,000 $94,000 Dividends paid by Gargiulo 10,000 10,000 15,000 ?For consolidation purposes, what amount would be debited to cost of goods sold for the 2018 consolidation worksheet with regard to the unrecognized intra-entity
gross profit remaining in ending inventory with respect to the 2018 transfer of merchandise?
A. $900.
B. $1,000.
C. $2,400.
D. $3,000.
E. $800.
Answer: B
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[APPENDIX] Which of the following statements regarding partnerships is true?
a. Partnerships must register with the federal government. b. Partnerships pay taxes to the IRS. c. Partners must register with the state government. d. Partners must abide by the separate entity concept and keep their personal assets separate from the partnership assets.
When a firm looks for new users in groups that might use a product but do not already use the product, the firm is using the ________ strategy
A) new-market segment B) market-penetration C) geographical-expansion D) product development E) diversification
Which of the following is the first step in strategic planning?
A) define business objectives B) develop the business portfolio C) establish the business mission D) craft a marketing strategy E) identify threats and weaknesses
_______________________________ arbitration is conducted to resolve disputes over contractual terms governing wages and terms and conditions of employment.
Fill in the blank(s) with the appropriate word(s).