P Company regularly sells merchandise to its 80%-owned subsidiary,S Corporation.In 2016,P sold merchandise that cost $240,000 to S for $300,000.Half of this merchandise remained in S's December 31,2016 inventory.During 2017,P sold merchandise that cost $375,000 to S for $468,000.Forty percent of this merchandise inventory remained in S's December 31,2017 inventory.Selected income statement information for the two affiliates for the year 2017 is as follows: Consolidated cost of goods sold for P Company and Subsidiary for 2017 are:
A)$2,260,500.
B)$2,268,000.
C)$2,276,700.
D)$2,737,500.

Question

P Company regularly sells merchandise to its 80%-owned subsidiary,S Corporation.In 2016,P sold merchandise that cost $240,000 to S for $300,000.Half of this merchandise remained in S's December 31,2016 inventory.During 2017,P sold merchandise that cost $375,000 to S for $468,000.Forty percent of this merchandise inventory remained in S's December 31,2017 inventory.Selected income statement information for the two affiliates for the year 2017 is as follows:  Consolidated cost of goods sold for P Company and Subsidiary for 2017 are:
A)$2,260,500. 
B)$2,268,000. 
C)$2,276,700. 
D)$2,737,500.

Quizplus · Accepted Answer

The Answer of P Company regularly sells merchandise to its 80%-owned subsidiary,S Corporation.In 2016,P sold merchandise that cost $240,000 to S for $300,000.Half of this merchandise remained in S's December 31,2016 inventory.During 2017,P sold merchandise that cost $375,000 to S for $468,000.Forty percent of this merchandise inventory remained in S's December 31,2017 inventory.Selected income statement information for the two affiliates for the year 2017 is as follows:  Consolidated cost of goods sold for P Company and Subsidiary for 2017 are:
A)$2,260,500. 
B)$2,268,000. 
C)$2,276,700. 
D)$2,737,500.

P Company Regularly Sells Merchandise to Its 80%-Owned Subsidiary,S Corporation