REFERENCE: Ref.05_01 Pot Co.holds 90% of the Common Stock of Skillet Co.During

question 54

Multiple Choice

REFERENCE: Ref.05_01
Pot Co.holds 90% of the common stock of Skillet Co.During 2009,Pot reported sales of $1,120,000 and cost of goods sold of $840,000.For this same period,Skillet had sales of $420,000 and cost of goods sold of $252,000.Also during 2009,Pot sold merchandise to Skillet for $140,000.The subsidiary still possesses 40% of this inventory at the end of 2009.Pot had established the transfer price based on its normal markup.
-What are consolidated sales and cost of goods sold?

• A)$1,400,000 and $952,000.
• B)$1,400,000 and $966,000.
• C)$1,540,000 and $1,078,000.
• D)$1,400,000 and $1,022,000.
• E)$1,540,000 and $1,092,000.

---

Definitions:

Blood Calcium

refers to the level of calcium in the blood, essential for bone health, muscle function, and nerve signaling.

mEq/L

Milliequivalents per liter, a unit of measurement in chemistry and medicine indicating the concentration of ions in a solution.

Sodium Blood Level

The concentration of sodium in the blood, essential for maintaining blood pressure and proper functioning of muscles and nerves.

mEq/L

Milliequivalents per liter, a unit of concentration used in chemistry and medicine to express the amount of a substance in a liquid.