Virginia Corp

question 65

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 the consolidation entries that should be made at the end of 2012.

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Definitions:

Perceived Size

An individual's subjective assessment of the dimension or magnitude of an object, which can be influenced by context or surrounding stimuli.

Perceived Distance

The subjective experience or estimation of how far an object or destination is from oneself.

Monocular Cue

A depth perception cue that can be perceived with just one eye, such as size, texture gradient, or linear perspective.

Light and Shadow

The play of light and darkness, often used in visual arts to create depth, highlight form, or convey mood and atmosphere.