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Top Company holds 90 percent of Bottom Company's common stock. In the current year, Top reports sales of $884,000 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 $884,000 and cost of goods sold of $663,000. For this same period, Bottom has sales of $315,000 and cost of goods sold of $220,500. During the current year, Bottom sold merchandise to Top for $150,000. The parent still possesses 15 percent of this inventory at the current year-end. Bottom had established the transfer price based on its normal gross profit rate. What are the consolidated sales and cost of goods sold? Multiple Choice $1,017,500 and $890,250. $1,049,000 and $756,000. $1,049,000 and $741,000. $1,049,000 and $740,250
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