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

question 107

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.
-Assuming that the transfers were from Skillet Co.to Pot Co. ,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 $974,400.
• E)$1,540,000 and $1,092,000.

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Definitions:

Sexual Dysfunction

A psychological disorder that reduces sexual activity due to a significant and enduring problem in sexual functioning or pleasure, causing distress and impairing the person’s life.

Medication-Induced

Pertaining to symptoms, disorders, or other medical conditions that are caused or exacerbated by pharmaceutical drugs.

Erectile Disorder

A sexual dysfunction marked by the inability to achieve or maintain an erection suitable for sexual intercourse.

Sexual Activities

Behaviors involving sexual intercourse or other forms of physical sexual expression between individuals.