Perth Corporation owns 90 percent of Sydney Company's stock.At the end of 20X8,Perth and Sydney reported the following partial operating results and inventory balances:
Perth regularly prices its products at cost plus a 30 percent markup for profit.Sydney prices its sales at cost plus a 10 percent markup.The total sales reported by Perth and Sydney include both intercompany sales and sales to nonaffiliates.
-Based on the information given above,what amount of sales will be reported in the consolidated income statement for 20X8?

Question

Perth Corporation owns 90 percent of Sydney Company's stock.At the end of 20X8,Perth and Sydney reported the following partial operating results and inventory balances:
  Perth regularly prices its products at cost plus a 30 percent markup for profit.Sydney prices its sales at cost plus a 10 percent markup.The total sales reported by Perth and Sydney include both intercompany sales and sales to nonaffiliates.
-Based on the information given above,what amount of sales will be reported in the consolidated income statement for 20X8?

Quizplus · Accepted Answer

The Answer is C

Perth Corporation Owns 90 Percent of Sydney Company's Stock