Part A:

Marks owns $100\%$ of Spencer. Before consolidation, Marks reports sales of $15,000,000$ and COGS of $12,500,000.$ Spencer reports sales of $$5,000,000$ and COGS of $$4,500,000$

During the current year, Spencer sells inventory for $$550,000(10\%$ above cost$)$ to Marks. At year$-$end, Marks has half of this inventory remaining.

Part B:

Fancy owns $100\%$ of Feast. Before consolidation, Fancy reports sales of $$110,000,000$ and COGS of $$50,000,000.$ Feast reports sales of $$20,000,000$ and COGS of $$12,000,000$

During the current year, Fancy sells inventory costing $$2,000,000$ to Feast for $$3,000,000.$ At year end, Feast has resold all but $$100,000$ of this inventory.

Please answer the following for both Part A and Part B: these two parts are independent of each other!

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 for income from sub? If so$,$ how much?