Use the Following Information to Answer the Question(s) Below

question 31

Multiple Choice

Use the following information to answer the question(s) below..

Pelga Company routinely receives goods from its 80%-owned subsidiary, Swede Corporation. In 2014, Swede sold merchandise that cost $80,000 to Pelga for $100,000. Half of this merchandise remained in Pelga's December 31, 2014 inventory. This inventory was sold in 2015. During 2015, Swede sold merchandise that cost $160,000 to Pelga for $200,000. $62,500 of the 2015 merchandise inventory remained in Pelga's December 31, 2015 inventory. Selected income statement information for the two affiliates for the year 2015 was as follows:

-Consolidated cost of goods sold for Pelga and Subsidiary for 2015 were

• A)$512,000.
• B)$526,000.
• C)$522,500.
• D)$528,000.

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Definitions:

Lactic Acid

A substance produced in the muscles during intense exercise, often associated with muscle fatigue and soreness.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and is absorbed by plants in photosynthesis.

Glycolysis

A metabolic process that breaks down glucose to produce energy, happening in the cytoplasm of cells.

Hydrolysis

A chemical reaction in which water is used to break bonds in molecules, such as the digestion of nutrients.