Perth Corporation owns 90 percent of Dundee Company's stock.At the end of 2008,Perth and Dundee reported the following partial operating results and inventory balances:
Perth regularly prices its products at cost plus a 30 percent markup for profit.Dundee prices its sales at cost plus a 10 percent markup.The total sales reported by Perth and Dundee 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 2008?

Question

Perth Corporation owns 90 percent of Dundee Company's stock.At the end of 2008,Perth and Dundee reported the following partial operating results and inventory balances:
Perth regularly prices its products at cost plus a 30 percent markup for profit.Dundee prices its sales at cost plus a 10 percent markup.The total sales reported by Perth and Dundee 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 2008?

Quizplus · Accepted Answer

The Answer of Perth Corporation owns 90 percent of Dundee Company's stock.At the end of 2008,Perth and Dundee reported the following partial operating results and inventory balances:
Perth regularly prices its products at cost plus a 30 percent markup for profit.Dundee prices its sales at cost plus a 10 percent markup.The total sales reported by Perth and Dundee 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 2008?

Perth Corporation Owns 90 Percent of Dundee Company's Stock