Webb Co Acquired 100% of Rand Inc

question 101

Multiple Choice

Webb Co. acquired 100% of Rand Inc. on January 5, 2011. During 2011, 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) $16,960,000.
• E) $14,560,000.

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