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Top Company holds 90 percent of Bottom Companys common stock. In the current year, Top reports sales of $950,000 and cost of goods sold of
Top Company holds 90 percent of Bottom Companys common stock. In the current year, Top reports sales of $950,000 and cost of goods sold of $760,000. For this same period, Bottom has sales of $450,000 and cost of goods sold of $270,000. During the current year, Top sold merchandise to Bottom for $250,000. The subsidiary still possesses 50 percent of this inventory at the current year-end. Top 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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