Question
A parent company's total sales revenue is $700,000. It's 90%-owned subsidiary, total sales is $200,000. 20% of the subsidiary's sales were sales made to the
A parent company's total sales revenue is $700,000. It's 90%-owned subsidiary, total sales is $200,000. 20% of the subsidiary's sales were sales made to the parent. At what amount should sales revenue be reported in the consolidation of income statement of these two companies?
a. $844,000
b. $860,000
c. $900,000
d. $840,000
e. (none of these)
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
8th edition
978-1118953815, 978-1118953907
