Compute consolidated sales.
A) $10,000,000.
B) $10,126,000.
C) $10,140,000.
D) $10,200,000.
E) $10,260,000.

Question

Quizplus · Accepted Answer

There are two companies with sales of $5,000,000 and $7,000,000 respectively. The consolidated sales would be the total of the two, which is $12,000,000. However, it is given that there are inter-company sales of $1,860,000, which need to be eliminated to arrive at the consolidated sales. Therefore, $12,000,000 - $1,860,000 = $10,140,000, which is option C.

Compute Consolidated Sales