Sub Company is a 100% owned subsidiary of Parent Corporation.During 2015,Parent sold inventory costing $500,000 to Sub for $750,000.Sub Company still had $150,000 (at transfer price)of the inventory on hand as of December 31,2015.During 2015,Parent Company reported sales of $2,250,000 and cost of goods sold of $1,500,000,while Sub Company reported sales of $1,200,000 and cost of goods sold of $1,000,000.
Required:
Determine the 2015 consolidated gross profit.

Question

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The Answer of Sub Company is a 100% owned subsidiary of Parent Corporation.During 2015,Parent sold inventory costing $500,000 to Sub for $750,000.Sub Company still had $150,000 (at transfer price)of the inventory on hand as of December 31,2015.During 2015,Parent Company reported sales of $2,250,000 and cost of goods sold of $1,500,000,while Sub Company reported sales of $1,200,000 and cost of goods sold of $1,000,000.
Required:
Determine the 2015 consolidated gross profit.

Sub Company Is a 100% Owned Subsidiary of Parent Corporation