Anderson Company, a 90% Owned Subsidiary of Philbin Corporation, Transfers

question 27

Multiple Choice

Anderson Company, a 90% owned subsidiary of Philbin Corporation, transfers inventory to Philbin at a 25% gross profit rate. The following data are available pertaining specifically to Philbin's intra-entity purchases from Anderson. Anderson was acquired on January 1, 2020. Assume the equity method is used. The following data are available pertaining to Anderson's income and dividends.
For consolidation purposes, what amount would be debited to cost of goods sold for the 2020 consolidation worksheet with regard to unrecognized intra-entity gross profit remaining in ending inventory with respect to the transfer of merchandise?

• A)$300.
• B)$240.
• C)$2,000.
• D)$1,600.
• E)$270.

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Definitions:

World Systems

A sociological perspective that analyzes societies in terms of their position within global economic and political systems.

Micro-Level Troubles

Issues or problems experienced by individuals or small social groups, often contrasted with large-scale societal issues.

Macro-Level Troubles

Large-scale social problems that affect large parts of society, often related to the structure and functioning of social institutions.

Macro-Micro Continuum

A spectrum in sociological theory that examines phenomena ranging from large-scale societal structures (macro) to individual actions and interactions (micro).