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Weisman Company, a 100% owned subsidiary of Martindale Corporation, sells inventory to Martindale at a 20% profit on selling price. The following data are available
Weisman Company, a 100% owned subsidiary of Martindale Corporation, sells inventory to Martindale at a 20% profit on selling price. The following data are available pertaining to inter-company purchases by Martindale: Inter-company sales 2020: $18,000 2021: $19,400 2022: $21,500 Unsold at year end (based on selling price) 2020: $4,000 2021: $6,000 2022: $8,000 Weisman's profit numbers were $125,000, $142,000 and $265,000 for 2020, 2021, and 2022, respectively. Martindale received dividends from Weisman of $25,000 for 2020 and 2021, and $30,000 for 2022 3. a. Assume Weisman uses the equity method to account for its investment in Martindale. What is the balance in the pre-consolidation Income (loss) from subsidiary account for 2021? $136,000 b. $140,800 C. $141,600 d. $142,800 4. Assume Weisman uses the equity method to account for its investment in Martindale. What is the balance in pre-consolidation Income (loss) from subsidiary for 2022? a. $235,000 b. $264,600 C. $265,400 d. $268,600 5. a. What would be the net debit or credit to cost of goods sold on the 2021 consolidation worksheet? $19,000 credit b. $19,800 credit $21,400 credit d. $ 400 debit c
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