Question

Taxpayer Info: Star Corp. is a calendar-year, accrual-method C corporation that sells inventory.

Answer 1

Answer:

Cost of Goods Sold = $100,000,000

Explanation:

given data

gross sales of $300,000,000

returns = $10,000,000

beginning worth of inventory = $20,000,000

During year worth of inventory = $105,000,000

end year worth of inventory =  $25,000,000

solution

we get here Cost of Goods Sold that is express as

Cost of Goods Sold = Cost of Goods purchased + Beginning Finished Goods Inventory - Ending Finished Goods Inventory   .......................1

put here value we get

Cost of Goods Sold = $105,000,000 + $20,000,000 - $25,000,000

Cost of Goods Sold = $100,000,000