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Top Company owns 80% interest of Bottom, Inc. In the current year, Top cost of goods sold of $7,500,000 and Bottom has cost of goods
Top Company owns 80% interest of Bottom, Inc. In the current year, Top cost of goods sold of $7,500,000 and Bottom has cost of goods sold of $160,000. During the year, Top sold merchandise to Bottom for $60,000. Tops gross profit percentage is 25%. At the end of the year, Bottom still possesses 30 percent of this inventory.
Compute consolidated cost of goods sold.
a.
$7,500,000.
b.
$7,655,500
c.
$7,664,500.
d.
$7,604,500.
e.
$7,660,000
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