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1) Clark Company purchased raw materials of $240,000 from Kent Corporation, a wholly owned subsidiary. Kent's gross profit on the sales was $48,000. Clark had
1) Clark Company purchased raw materials of $240,000 from Kent Corporation, a wholly owned subsidiary. Kent's gross profit on the sales was $48,000. Clark had $60,000 of this inventory remaining on December 31, 20x4.
What was Kent's original cost of the raw materials?
2) How much will Cost of Goods Sold be credited in the consolidation entry required for the 20x4 consolidation?
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