Coll Company (the parent company)manufactured a product at a cost of $150 and sold it to Obman Company,a subsidiary of Coll,for $200.Obman Company sold the product to its customer for $284.As a result of these transactions,how much gross profit will appear on a consolidated income statement?

Question

Quizplus · Accepted Answer

The gross profit on the consolidated income statement is the difference between the sales revenue and the cost of goods sold. In this case, the sales revenue is $284 and the cost of goods sold is $150. Therefore, the gross profit is $284 - $150 = $134.

Coll Company (The Parent Company)manufactured a Product at a Cost