Pot Co Holds 90% of the Common Stock of Skillet Co

question 2

Multiple Choice

Pot Co. holds 90% of the common stock of Skillet Co. During 2013, 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.
Included in the amounts for Skillet's sales were Skillet's sales of merchandise to Pot for $140,000. There were no sales from Pot to Skillet. Intra-entity sales had the same markup as sales to outsiders. Pot still had 40% of the intra-entity sales as inventory at the end of 2013. What are consolidated sales and cost of goods sold for 2013?

• 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.

---

Definitions:

Viable Tissue

Living tissue that has the ability to grow, function, or regenerate in a medical or biological context.

Clean Wound Bed

The state of a wound when it is free from infection and dead tissue, with healthy granulation tissue present.

Bacterial Balance

The equilibrium between beneficial and harmful bacteria in an environment, such as the human gut.

Proliferative Phase

The stage of wound healing or tissue repair where cells multiply and spread to replace lost or damaged tissue, followed by collagen formation and tissue strengthening.