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4. Presented below are several figures reported for ABC Corporation and XYZ Industries as of December 31, 2020. ABC has owned 70% of XYZ for

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4. Presented below are several figures reported for ABC Corporation and XYZ Industries as of December 31, 2020. ABC has owned 70% of XYZ for the past five years, and at the time of purchase, the book value of XYZ's assets and liabilities equaled the fair value. The cost of the 70% investment was equal to 70% of the book value of XYZ's net assets. At the time of purchase, the fair values and book values of XYZ's assets and liabilities were equal. ABC Inventory Sales Cost of Goods Sold Expenses $120,000 200,000 130,000 40,000 XYZ $60,000 140,000 80,000 30,000 In 2019, XYZ sold inventory to ABC which had cost $40,000 for $60,000. 25% of this inventory remained on hand at December 31, 2019, but was sold in 2020. In 2020, XYZ sold inventory to ABC which had cost $30,000 for $45,000. 40% of this inventory remained unsold at December 31, 2020 Required: Calculate Consolidated Sales balance at December 31, 2020 (2 points)

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