Answered step by step
Verified Expert Solution
Question
1 Approved Answer
hello can you please help me answer / understand. thank you Pruitt Corporation owns 90% of the common stock of Sedbrook Company. The stock was
hello can you please help me answer / understand. thank you
Pruitt Corporation owns 90% of the common stock of Sedbrook Company. The stock was purchased for $628,290 on January 1,2012. when Sedbrook Company's retained earnings were $95,100. Preclosing trial balances for the two companies at December 31,2016 , are presented here: The Jansary 1,2016, inventory of Sedbrook Company includes $24,900 of profit recorded by Prvitt Corporation on 2015 sales. During 2016, Pruitt Corporation made intercompary sales of 5249.300 with a markup of 20% on cost. The ending inventory of Sedbrook Company includes goods purchased in 2016 from Pruitt for $60.000 Pruitt Corporation owns 90% of the common stock of Sedbrook Company. The stock was purchased for $628,290 on January 1,2012. when Sedbrook Company's retained earnings were $95,100. Preclosing trial balances for the two companies at December 31,2016 , are presented here: The Jansary 1,2016, inventory of Sedbrook Company includes $24,900 of profit recorded by Prvitt Corporation on 2015 sales. During 2016, Pruitt Corporation made intercompary sales of 5249.300 with a markup of 20% on cost. The ending inventory of Sedbrook Company includes goods purchased in 2016 from Pruitt for $60.000 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started