Question
Mars owns 100% of Jupiter. Before consolidation, Mars reports sales of 25,000,000 and COGS of 12,500,000. Jupiter reports sales of $50,000,000 and COGS of $40,500,000
Mars owns 100% of Jupiter. Before consolidation, Mars reports sales of 25,000,000 and COGS of 12,500,000. Jupiter reports sales of $50,000,000 and COGS of $40,500,000 During the current year, Mars sells inventory for $6,000,000 (at 20% above cost) to Jupiter. At year-end, Jupiter has half of this inventory remaining.
- What is the consolidated sales number for the year
- What is the consolidated COGS number for the year
- Is there an adjustment to consolidated inventory at year-end, and if so, how much?
- Will there be any adjustments on the parent's stand-alone books related to this transaction, and if so, how much.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
