Salt Inc.is a wholly owned subsidiary of Pepper Inc.During 2013, Salt reported sales of $4,500,000, including $750,000 of Pepper.Pepper reported sales of $15,000,000.Included in Pepper's sales was $500,000 of the goods they bought from Salt.They sold them for $600,000.What would be the sales amount reported on the consolidated income statement for 2013?

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Sales of Salt Inc. = $4,500,000Sales of Pepper Inc. = $15,000,000Eliminate intercompany sales:Sales of Pepper Inc. to Salt Inc. = $500,000Sales of Salt Inc. to Pepper Inc. = $750,000Consolidated sales = $4,500,000 + $15,000,000 - $500,000 - $750,000 = $18,750,000

Salt IncIs a Wholly Owned Subsidiary of Pepper Inc