help in homework

New User?

Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Parker Corporation owns 80 percent of Smith Inc

Parker Corporation owns 80 percent of Smith Inc

Accounting

Parker Corporation owns 80 percent of Smith Inc.’s common stock. During 2011, Parker sold inventory to Smith for $250,000 on the same terms as sales made to third parties. Smith sold all of the inventory purchased from Parker in 2011. The following information pertains to Smith’s and Parker’s sales for 2011: 

 

Parker

Smith

  Sales

$

1,000,000

 

$

700,000

 

  Cost of Sales

 

(400,000

)

 

(350,000

)

 

  Gross Profit

$

600,000

 

$

350,000

 

 

 

 

What amount should Parker report as cost of sales in its 2011 consolidated income statement?

Option 1

Low Cost Option
Download this past answer in few clicks

3.87 USD

PURCHASE SOLUTION

Already member?

Option 2

Custom new solution created by our subject matter experts

GET A QUOTE

rated 5 stars

Purchased 7 times

Completion Status 100%
View Answer

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)

Related Questions