Pristine Corporation owns 80% of Serendipity Incs common stock. During 2008, Pristine sold Serendipity $250,000 of inventory

Question:

Pristine Corporation owns 80% of Serendipity Inc’s common stock. During 2008, Pristine sold Serendipity $250,000 of inventory on the same terms as sales made to third parties. Serendipity sold all the inventory purchased from Pristine in 2008.

The following data pertain to sales by each company for the year:

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How much should be reported as cost of goods sold in the consolidated income statement for 2008?

a. $400,000

b. $500,000

c. $680,000

d. $750,000

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Advanced Accounting

ISBN: 12

5th Edition

Authors: Debra C Jeter, Paul K Chaney

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Question Posted: May 20, 2024 09:02 AM

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Pristine Corporation owns 80% of Serendipity Incs common stock. During 2008, Pristine sold Serendipity $250,000 of inventory

Question:

Pristine Sales $1,000,000 Cost of goods sold 400,000 Serendipity $700,000 350,000

Step by Step Answer:

Advanced Accounting

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