Question
Power Corporation owns 75 percent of Turk Companys stock; no intercompany purchases or sales were made in 20X4. For the year, Power and Turk reported
Power Corporation owns 75 percent of Turk Companys stock; no intercompany purchases or sales were made in 20X4. For the year, Power and Turk reported sales of $380,000 and $220,000 and cost of goods sold of $170,000 and $104,500, respectively. Powers inventory increased by $31,000, but Turks decreased by $19,000. Powers accounts receivable increased by $27,000 and its accounts payable decreased by $16,000 during 20X4. Turks accounts receivable decreased by $12,000 and its accounts payable increased by $5,000.
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