Assume the same information, except Shannon sold inventory to Patti.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

Since Shannon sold inventory to Patti, we need to eliminate the intercompany sales. 
Consolidated sales = Shannon's sales + Patti's sales - Intercompany sales
Consolidated sales = $6,000,000 + $5,000,000 - $140,000
Consolidated sales = $10,140,000

Assume the Same Information, Except Shannon Sold Inventory to Patti