124 125 126 127 128 Question 7 129 Polk Corp. owns 90% of Ace Corp.'s common stock and 80% of Kings Corp.'s common stock. The remaining co mon shares of Ace 130 and Kings are owned by their respective employees. Ace sells exclusively to Kings, Kings buys exclusively from Ace, and Kings sells exclusivehy 131 to unrelated companies. Selected information for Ace and Kings for the year follows: 132 Polk owns: 90% 80% 134 135 Sales 136 Cost of sales 137 Beginning inventory 138 Ending inventory 139 mark up (sls/cogs) 140 gross profit dollars 141 142 What amount should be reported as gross profit in Ace and Kings' combi 143 144 150,000 $100,000 120,00075,000 0 125% 75,000 30,000 25,000 ned income statement for the year ended December 31? 45 46 147 150 151 152 Ready