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20. During year 1, Pard Corp. sold goods to its 80 %, owned subsidiary, Seed Corp. At December 31, year 1, one-half of these goods

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20. During year 1, Pard Corp. sold goods to its 80 %, owned subsidiary, Seed Corp. At December 31, year 1, one-half of these goods were included in Seed's ending inventory. Reported year 1 selling expenses were $1,100,000 and $400,000 for Pard and Seed, respectively. Pard's selling expenses included $50,000 in freight-out costs for goods sold to Seed. What amount of selling expenses should be reported in Pard's year 1 consolidated income statement? a. $1,500,000 b. $1,480,000 c. $1,475,000 d. $1,450,000 24. Ahm Corp. owns 90 % of Bee Corp.'s common stock and 80% of Cee Corp.'s common stock. The remaining common shares of Bee and Cee are owned by their respective employees. Bee sells exclusively to Cee, Cee buys exclusively from Bee, and Cee sells exclusively to unrelated companies. Selected year 1 information for Bee and Cee follows: Corp. $130,000 100,000 Cee Corp. $91,000 65,000 Sales Cost of sales Beginning inventory Ending inventory What amount should be reported as gross profit in Bee and Cee's combined income statement for the year ended December 31, year 1? a. $26,000 b. $41,000 c $47,800 d. $56,000 None None 65,000 None

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