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.

---

Definitions:

Standard Deviation

A metric that quantifies the degree to which values in a collection vary from the average value of the group.

IQR

The interquartile range, a measure of statistical variability between the 25th and 75th percentiles.

Range

The difference between the highest and lowest values in a dataset, providing a measure of the data's dispersion.

Standard Deviation

An indicator calculating the spread of data around the mean, achieved by the square root of the variance.