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Pool Company owns 100 percent of the capital stock of both Salt Corporation and Sun Corporation. Salt purchases merchandise inventory from Sun at 120 percent
Pool Company owns 100 percent of the capital stock of both Salt Corporation and Sun Corporation. Salt purchases merchandise inventory from Sun at 120 percent of Sun cost. During 2021, Sun sold inventory to Salt that it had purchased for $25,000. Salt sold all of this merchandise to unrelated customers for $56,892 during 2021. In preparing combined financial statements for 2021, Pool' bookkeeper disregarded the common ownership of Salt and Sun. 10) What amount should be eliminated from cost of goods sold in the combined income statement for 2021
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