Potter Company acquired 75 percent ownership of Snape Corporation in 20X5, at underlying book value. On that date, the fair value of the noncontrolling interest was equal to 25 percent of the book value of Snape Corporation. Potter purchased inventory from Snape for $150,000 on July 24, 20X6, and resold 90 percent of the inventory to unaffiliated companies on November 11, 20X6, for $160,000. Snape produced the inventory sold to Potter for $120,000. The companies had no other transactions during 20X6.Based on the information given above, what amount of cost of goods sold will be reported in the 20X6 consolidated income statement?
A. $90,000
B. $135,000
C. $108,000
D. $120,000
Answer: C
Business
You might also like to view...
The total amount paid to various carriers for transporting products to customers is
A) transportation cost. B) inventory cost. C) facility cost. D) processing cost.
Business
The ________ depreciation method allocates equal amounts of an asset's cost to depreciation during its useful life.
Fill in the blank(s) with the appropriate word(s).
Business
A good contract will spell out ________, or unforeseeable "acts of God" beyond anyone's control, for which neither party is responsible.
A. contingencies B. liabilities C. amendments D. disasters
Business
Yield to maturity (YTM) is the rate investors earn if they buy the bond at a specific price and hold it until maturity
Indicate whether the statement is true or false
Business