Bates Ltd Owns 60% of the Outstanding Common Shares of Sam

question 18

Multiple Choice

Bates Ltd. owns 60% of the outstanding common shares of Sam Ltd. During 20X6, sales from Sam to Bates were $200,000. Merchandise was priced to provide Sam with a gross margin of 20%. Bates's inventories contained $40,000 at December 31, 20X5, and $15,000 at December 31, 20X6, of merchandise purchased from Sam. Cost of goods sold for Bates and Sam for 20X6 on their separate-entity income statements were as follows: $$\begin{array} { | l | r | r | } \hline & \underline { \text { Bates } } & \underline { \text { Sam } } \\\hline \text { Beginning inventory } & \$ 100,000 & \$ 50,000 \\\hline \text { Purchases } & 700,000 & 200,000 \\\hline \text { Ending inventory } & \underline { ( 110,000 } & \underline { 55,000 } \\\hline \text { Cost of goods sold } & \$ \underline { 690,000 } & \$ \underline { 195,000 } \\\hline\end{array}$$
- What is the balance of the consolidated inventory account at December 31, 20X6?

• A)$160,000
• B)$162,000
• C)$165,000
• D)$168,000

Identify and describe the parts of the eye essential for seeing and protecting vision.

Comprehend the neural pathway of vision and hearing from sensory organs to the brain.

Recognize the characteristics and properties of sounds and how they are processed and perceived.

Understand the structure, function, and importance of inner ear components in hearing and balance.

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Definitions:

Vertices

Vertices are the plural of vertex, referring to the corner points where two or more lines, edges, or rays meet in geometric shapes.

Co-vertices

Points on an ellipse or hyperbola that lie at the end of the minor axis.

Equation

A statement that asserts the equality of two mathematical expressions, often containing one or more variables.

Vertices

The plural of vertex, meaning the corners or points where lines meet in a geometric shape.