Publishers Carl Chapter 41 Consolidated Financial Statements and Intercompany Transactions Use the following facts for Multiple Choice problems 2225. 25. In w pa financial statements for the year ending December 31, 2019: Consolidated Parent C $6,150,000 (3,550,500) 2,599,500 d. 26. I A 2 $4,200,000 (2,730,000) 1,470,000 222,000 (1,200,000) $ 492,000 $ (2,107,500) $ 492,000 a Y $ 300,000 492,000 (90,000) $ 702,000 $ 300,000 492,000 (90,000) $ 702,000 27. 82,500 excerpts are from the parent's and subsidiary's pre-consolidation financial statements and the consolidated Assume a parent company owns a 100% controlling interest in its long-held subsidiary. The following What is the amount of parent-company profit from intercompany inventory transactions that was in the 254 Subsid. $2,850,000 Income Statement: (1,710,000) Revenues Cost of goods sold 1,140,000 Gross profit...... (907,500 Income from subsidiary Selling, general & administrative expenses $ 232,500 Net income Retained earnings statement: $ 277,500 Retained earnings, January 1.. 232,500 Net income ........ (67,500) Dividends declared..... $ 442,500 Retained earnings, December 31. ... Balance Sheet: $ 60,000 $ 90,000 $ 150,000 Cash.. 180,000 112,500 244,500 Accounts receivable Inventories ........ 195,000 135,000 298,500 Equity investment. 973,500 1,275,000 930,000 2,205,000 Property, plant & equipment. 75,000 Goodwill Total assets. $2,713,500 $1,237,500 $2,973,000 Accounts payable $ 120,000 $ $ 154,500 All other liabilities 450,000 225,000 675,000 Common stock & APIC. 1,441,500 487,500 1,441,500 Retained earnings 702,000 442,500 702,000 Total liabilities and equity $2,713,500 $1,237,500 $2,973,000 The parent sold inventories to the subsidiary during both 2018 and 2019. For these sales to the subsidiary, the parent earns a gross profit of 35%. L01 22. Intercompany inventory transactions What is the amount of intercompany sales between the parent and subsidiary during the December 31, 2019? year ending $2,730,000 b. $ 889,500 c. $ 900,000 d. $2,370,000 DOPO LO1 23. Intercompany inventory transactions songs mwobenen b. What is the amount of parent-company profit from intercompany inventory transactions that was in the subsidiary's ending inventory on December 31, 2019? or mobile a. $31,500 to bolo tanto odb. $47,250 0.02 Brodnica o c. $68,250 d. $21,000 LO1 24. Intercompany inventory transactions subsidiary's beginning inventory on January 1, 2019? a. $31,500 b. $21,000 c. $47,250 d. Not enough information 28. a. E 2