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Pam Company owns controlling interests in Sun and Toy Corporations, having acquired an 80 percent interest in Sun in 2016, and a 90 percent interest
Pam Company owns controlling interests in Sun and Toy Corporations, having acquired an 80 percent interest in Sun in | ||||||
2016, and a 90 percent interest in Toy on January 1, 2017. Pams investments in Sun and Toy were at book value equal to fair value. |
Inventories of the affiliated companies at December 31, 2017, and December 31, 2018, were as follows:
Dec 31 2017 | Dec 31. 2018 | ||
Pam inventories | 120000 | 108000 | |
Sun inventories | 77500 | 62500 | |
Toy inventories | 48000 | 72000 |
Pam sells to Sun at a 25 percent markup based on cost, and Toy sells to Pam at a 20 percent markup based on cost. | ||||||||||||||||||||
Pams beginning and ending inventories for 2018 consisted of 40 percent and 50 percent, respectively, of goods | ||||||||||||||||||||
acquired from Toy. All of Suns inventories consisted of merchandise acquired from Pam.
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