Cattle Company sold inventory with a cost of $40,000 to its 90%-owned subsidiary, Range Corp., for $100,000 in 20X1. Range resold $75,000 of this inventory for $100,000 in 20X1. Based on this information, the amount of inventory reported on the consolidated financial statements at the end of 20X1 is:

Question

Quizplus · Accepted Answer

11eb11de_931d_8868_ad38_bb887867371b_TB2014_00 The goods in ending inventory should be reflected in the financial statements at the cost at which they were purchased from outside parties; in this case, $10,000. ($25,000 x 40%)

Cattle Company Sold Inventory with a Cost of $40,000 to Its