Parent Corporation owns 65 percent of Subsidiary Company's stock. At the end of 2019, Parent and Subsidiary reported the following partial operating results and inventory balances:

Parent

Subsidiary

Total Sales

$

750,000

$

200,000

Sales to Subsidiary Company

150,000

Sales to Parent Corporation

75,000

Net income

35,000

Net Income

73,000

Inventory on hand, December 31, 2019, purchased from:

Subsidiary Company

11,000

Parent Corporation

62,000

Parent regularly prices its products at cost plus a 40 percent markup for profit. Subsidiary prices its sales at cost plus a 25 percent markup. The total sales reported by Parent and Subsidiary include both intercompany sales and sales to nonaffiliates.

Question 31(1 point)

Saved

Based on the information given above, what amount of sales will be reported in the consolidated income statement for 2019?

Question 31 options:

a)

$725,000

b)

$750,000

c)

$875,000

d)

$950,000

Question 32(2 points)

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Based on the information given above, what balance will be reported for inventory in the consolidated balance sheet for December 31, 2019?

Question 32 options:

a)

$8,800

b)

$44,286

c)

$53,086

d)

$73,000