Webb Co Acquired 100% of Rand Inc

question 1

Multiple Choice

Webb Co. acquired 100% of Rand Inc. on January 5, 2013. During 2013, Webb sold goods to Rand for $2,400,000 that cost Webb $1,800,000. Rand still owned 40% of the goods at the end of the year. Cost of goods sold was $10,800,000 for Webb and $6,400,000 for Rand. What was consolidated cost of goods sold?

• A) $17,200,000.
• B) $15,040,000.
• C) $14,800,000.
• D) $15,400,000.
• E) $14,560,000.

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Definitions:

Divulge

To divulge means to disclose or reveal something that was previously private, secret, or unknown.

Security System Costs

The expenses associated with implementing and maintaining systems designed to protect an organization’s data, assets, and personnel from various threats.

User Satisfaction

The measurement of how well products or services meet or exceed the expectations of users or customers.

Subsystems

Components or smaller systems that operate within a larger system, each with a specific function contributing to the overall system's performance.