ABC Corporation owns 75 percent of XYZ Company's voting shares. During 20X8, ABC produced 50,000 chairs at a cost of $79 each and sold 35,000 chairs to XYZ for $90 each. XYZ sold 18,000 of the chairs to unaffiliated companies for $117 each prior to December 31, 20X8, and sold the remainder in early 20X9 for $130 each. Both companies use perpetual inventory systems.

10.

Required information

Based on the information given above, what amount of cost of goods sold did ABC record in 20X8?

$2,765,000

$1,620,000

$1,422,000

$2,963,000

11.

Required information

Based on the information given above, what amount of cost of goods sold did XYZ record in 20X8?

$2,765,000

$1,620,000

$1,422,000

$2,963,000

12.

Required information

Based on the information given above, what amount of cost of goods sold must be reported in the consolidated income statement for 20X8?

$2,765,000

$1,620,000

$1,422,000

$2,963,000

13.

Required information

Based on the information given above, what amount of cost of goods sold must be eliminated from the consolidated income statement for 20X8?

$2,765,000

$1,620,000

$1,422,000

$2,963,000

14.

Required information

Based on the information given above, what amount of cost of goods sold must be eliminated from the consolidated income statement for 20X9?

$187,000

$221,000

$1,422,000

$2,963,000