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Tanim Space Inc. holds 90 percent of Archie Robotics Incs common stock. In the current year, Tanim reports sales of $940,000 and cost of goods
Tanim Space Inc. holds 90 percent of Archie Robotics Incs common stock. In the current year, Tanim reports sales of $940,000 and cost of goods sold of $564,000. For this same period, Archie has sales of $440,000 and cost of goods sold of $220,000. During the current year, Tanim sold merchandise to Archie for $240,000. The subsidiary still possesses 40 percent of this inventory at the current year-end. Tanim had established the transfer price based on its normal gross profit rate. What are the consolidated sales and cost of goods sold?
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