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Top Company holds 90 percent of Bottom Company's common stock. In the current year, Top reports sales of $800,000 and cost of goods sold of
Top Company holds 90 percent of Bottom Company's common stock. In the current year, Top reports sales of $800,000 and cost of goods sold of $600,000. For this same period, Bottom has sales of $300,000 and cost of goods sold of $180,000. During the current year, Bottom sold merchandise to Top for $100.000. The parent till possesses 40 percent of this inventory at the current year-end, Bottom had established the transfer price based on its normal gross proftrate. What are the consolidated sales and cost of goods sold
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