Virginia Corp

question 19

Essay

Virginia Corp. owned all of the voting common stock of Stateside Co. Both companies use the perpetual inventory method, and Virginia decided to use the partial equity method to account for this investment. During 2012, Virginia made cash sales of $400,000 to Stateside. The gross profit rate was 30% of the selling price. By the end of 2012, Stateside had sold 75% of the goods to outside parties for $420,000 cash.
Prepare any 2013 consolidation worksheet entries that would be required regarding the 2012 inventory transfer.

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Definitions:

Foreign Substances

Substances that are not naturally found within an organism or system, often implying exposure to chemicals, toxins, or pathogens from external sources.

Stress

The experience of emotional or mental pressure due to tough or unfavorable conditions.

Physical Illness

Physical illness is a condition that impairs the normal functioning of the body, often characterized by specific symptoms and signs.

Health Research

The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions regarding health and disease.