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Please help me on question 29 ONLY? Thank you. What amount should be reported as gross the year ended December 31, year 1? ould be
Please help me on question 29 ONLY? Thank you.
What amount should be reported as gross the year ended December 31, year 1? ould be reported as gross profit in Bee and Cee's combined income statement for a. $26,000 b. S41,000 e. S47,800 d. 556,000 28. The following information pertains to shipments of merchandise from Home Office to Branch during year 1: Home Office's cost of merchandise S160,000 Intracompany billing 200,000 Sales by Branch 250,000 Unsold merchandise at Branch on December 31. year 1 20,000 In the combined income statement of Home Office and Branch for the year ended December 31, year 1, what amount of the above transactions should be included in sales? a. $250,000 b. S230,000 c. $200,000 d. S180,000 29. Scroll, Inc., a wholly owned subsidiary of Pim. Inc. began operations on January 1. Year 4. The following information is from the condensed Year 4 income statements: Pim Scroll Sales to Scroll $100,000 Sales to others 400.000 300.000 $500,000 300,000 Cost of goods sold: Acquired from Pim 80,000 Acquired from others 350.000 190,000 Gross profit $150,000 $30,000 Depreciation 40,000 10,000 Other expenses 60.000 15.000 Income from operations $50,000 $5,000 Gain on sale of equipment to Scroll 12,000 Income before income taxes $38,000 $5,000 Additional Information: Sales by Pim to Scroll are made on the same terms as those made to third parties. Equipment purchased by Scroll from Pim for $36,000 on January 1, Year 4, is depreciated using the straight-line method over 4 years. In Pim's December 31, Year 4, consolidating worksheet, how much intercompany profit should be eliminated from Scroll's inventory? a. $30,000 b. $20,000 c. $10,000 d. $6,000Step by Step Solution
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