Large Company Owns 80% of the Issued Capital of Smaller

question 56

Multiple Choice

Large Company owns 80% of the issued capital of Smaller Company and Large Company owns 60% of the issued capital of Medium Company.The three companies form an economic entity for the purposes of consolidated accounts.During the period Smaller Company sold inventory to Medium for $400 000.Medium sold the same inventory to Large for $560 000 and Large sold it to an entity external to the group for $760 000.What are the sales revenue reported in the consolidated statements for this item?

• A) $1 416 000
• B) $1 720 000
• C) $760 000
• D) $400 000

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Definitions:

Anti-Tax Sentiment

Opposition to tax levies, often based on the belief that taxes are unnecessarily high or unfairly allocated.

Technological Equipment

Tools and devices developed from scientific knowledge used in various fields, including medical, industrial, and consumer applications.

Prices Charged

The monetary amount requested or expected in exchange for goods or services.

Universal Health Coverage

A health care system in which all individuals have access to essential health services without suffering financial hardship.