Question
Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago. During 2020, Skybox sold inventory costing $127,500 to Parkette for $170,000. A
Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago. During 2020, Skybox sold inventory costing $127,500 to Parkette for $170,000. A total of 15 percent of this inventory was not sold to outsiders until 2021. During 2021, Skybox sold inventory costing $282,000 to Parkette for $352,500. A total of 25 percent of this inventory was not sold to outsiders until 2022. In 2021, Parkette reported cost of goods sold of $567,500 while Skybox reported $340,000. What is the consolidated cost of goods sold in 2021?
Multiple Choice
A. $543,750.
B. $918,750.
C. $583,000.
D. $566,250.
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