ABC Corporation Owns 75 Percent of XYZ Company's Voting Shares

question 39

Multiple Choice

ABC Corporation owns 75 percent of XYZ Company's voting shares.During 2008,ABC produced 50,000 chairs at a cost of $79 each and sold 35,000 chairs to XYZ for $90 each.XYZ sold 18,000 of the chairs to unaffiliated companies for $117 each prior to December 31,2008,and sold the remainder in early 2009 for $130 each.Both companies use perpetual inventory systems.
-Based on the information given above,what amount of cost of goods sold did XYZ record in 2008?

• A)$2,765,000
• B)$1,620,000
• C)$1,422,000
• D)$2,963,000

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Definitions:

Convicted Rapists

Individuals who have been legally found guilty of committing rape.

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Responsible for a specified wrongdoing; having committed an offense.

Culture Of Rape

A societal environment where rape is prevalent and normalized due to societal attitudes about gender and sexuality.

Condemn

to express complete disapproval of, usually in a public and formal manner.