Patti Company Owns 80% of the Common Stock of Shannon

question 87

Multiple Choice

Patti Company owns 80% of the common stock of Shannon, Inc. In the current year, Patti reports sales of $10,000,000 and cost of goods sold of $7,500,000. For the same period, Shannon has sales of $200,000 and cost of goods sold of $160,000. During the year, Patti sold merchandise to Shannon for $60,000 at a price based on the normal markup. At the end of the year, Shannon still possesses 30 percent of this inventory.Assume the same information, except Shannon sold inventory to Patti. Compute consolidated sales.

• A) $10,000,000.
• B) $10,126,000.
• C) $10,140,000.
• D) $10,200,000.
• E) $10,260,000.

---

Definitions:

Supportive Strategies

Approaches aimed at providing assistance and empowerment to individuals in various settings, enhancing their ability to succeed or cope with challenges.

Potty Training

is the process of teaching a young child to use the toilet for urination and defecation.

Toddler Stage

A developmental phase in children aged approximately 1 to 3 years, characterized by rapid growth in mobility, language, and cognitive skills.

Baumrind's Framework

A model developed by psychologist Diana Baumrind that categorizes parenting styles into authoritative, authoritarian, permissive, and neglectful categories.