Q2-3. Selected information from the separate and consolidated balance sheets and income statements of Pare, Inc. and its subsidiary, Shel Co., as of December 31, year 1, and for the yea then ended is as follows: Pare Shel Consolidated Balance sheet accounts Accounts receivable Inventory Income statement accounts/amounts Revenues Cost of goods sold Gross Profit $ 52,000 38,000 $ 78,000 50,000 98,000 60,000 $400,000 $280,000 S560,000 300,000 220,000 412,000 $100,000 60,000 $148,000 During year 1, Pare sold goods to Shel at the same markup on cost that Pare In Pare's consolidating worksheet, what amount of unrealized intercompany profit uses for all sales. a. $6,000. b. $12,000. c. $58,000. d. $64,000. wer the following questions, with your work clearly from intercompany Question 2 - Ans shown. Assume transactions in all cases Q2-1, Parker Corp. owns 80% of Smith, Inc.'s common stock. Duri beginning inventory ho ng the year, Parker sold Smith $250,000 of inventory on the same terms as sales made to third parties. Smith Inc. so ld 60% of 's the inventory purchased from Parker during the year. The following information pertains to Smith and Parker's sales for the year: Parker S1,000,000 $700,000 Smith Sales Cost of sales (400,000) Gross Profit S 600 000 (350,000) S350,000 Assuming that there was no beginning inventory from intercompany transactions, what amount should Parker report as cost of sales in its consolidated income statement? a. $750,000 b. $560,000 c. $500,000 d. $430,000