question archive Perth Corporation owns 90 percent of Dundee Company's stock
Perth Corporation owns 90 percent of Dundee Company's stock
Subject:AccountingPrice:2.87 Bought7
Perth Corporation owns 90 percent of Dundee Company's stock. At the end of 20X8, Perth and Dundee reported the following partial operating results and inventory balances:
| Perth Corporation |
Dundee Company |
|
| Total sales | $500,000 | $350,000 |
| Sales to Dundee Company | 100,000 | |
| Sales to Perth Corporation | 150,000 | |
| Net income | 15,000 | |
| Operating income (excluding investment income from Dunde) | 56,000 | |
| Inventory on hand, December 31, 20X8, purchased from: | ||
| Dundee Company | 36,000 | |
| Perth Corporation | 31,000 |
Perth regularly prices its products at cost plus a 30 percent markup for profit. Dundee prices its sales at cost plus a 10 percent markup. The total sales reported by Perth and Dundee include both intercompany sales and sales to nonaffiliates.
Based on the information given above, what balance will be reported for inventory in the consolidated balance sheet for December 31, 20X8?
$56,573
$23,846
$32,727
$67,000
Option 1
Low Cost Option
Download this past answer in few clicks
2.87 USD
PURCHASE SOLUTION
Option 2
Custom new solution created by our subject matter experts
GET A QUOTE
rated 5 stars
Purchased 7 times
