1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kirill115 [55]
3 years ago
10

Blue Company purchased 60 percent ownership of Kelly Corporation in 20X1. On May 10, 20X2, Kelly purchased inventory from Blue f

or $60,000. Kelly sold all of the inventory to an unaffiliated company for $86,000 on November 10, 20X2. Blue produced the inventory sold to Kelly for $47,000. The companies had no other transactions during 20X2.
1. What amount of sales will be reported in the 20X2 consolidated income statement?
a. $51,600
b. $60,000
c. $86,000
d. $146,000
2. What amount of cost of goods sold will be reported in the 20X2 consolidated income statement?
a. $36,000
b. $47,000
c. $60,000
d. $107,000
3. What amount will be reported as consolidated net income for 20X2?
a. $13,000
b. $26,000
c. $28,600
d. $39,000
Business
1 answer:
aleksandr82 [10.1K]3 years ago
3 0

Answer:

Blue Company

Consolidation of Parent & Subsidiary Companies :

1. c. $86,000

2. b. $47,000

3. d. $39,000

Explanation:

In preparing a consolidated income statement, Blue Company with controlling interest of 60% will eliminate intercompany transactions, sales, purchases, inventory, and profits.  This is because such transactions are assumed to be within the same consolidated entity.

Only such transactions involving outsiders are taken into consideration for the purpose of determining profits and arriving at the financial position of the consolidated group.

You might be interested in
On average, someone with a Bachelor's degree is estimated to earn ____ times more than someone with a high school diploma.
Allisa [31]
I Think The answer is d I hope it helps
5 0
3 years ago
Lester Moy bought two new Michelin Tires for his car at $99.55 per tire. He was also charged $4.95 per tire for mounting, $2.65
Arte-miy333 [17]
You have to do some adding and multiplying. first 99.55 times 4 tires

3 0
4 years ago
Galaxy Inc. has a tax burden ratio of .75, an interest burden of .6, a leverage ratio of 1.25, and a return on sales of 10%. Thi
emmainna [20.7K]

Answer:

Return on equity = 13.5 %

Explanation:

given data

tax burden ratio = 0.75

interest burden = 0.6

leverage ratio = 1.25

return on sales = 10%

sales assets = $2.40

to find out

What is the firm's ROE

solution

we get here Return on equity (ROE) that is express as

Return on equity = tax burden ratio ×leverage ratio × interest burden ratio × return on sale × sales      .......................1

put here value we get

Return on equity =  0.75  × 1.25  × 0.6  × 10%  × 2.40

Return on equity =  0.75  × 1.25  × 0.6  × 0.10  × 2.40

Return on equity = 0.135

Return on equity = 13.5 %

6 0
4 years ago
In a business class where team members are arguing over content choices for a powerpoint presentation, it might help to remind e
GREYUIT [131]
<span>The example indicates that the strategy is Appeals to common goals. If you wish to obtain the cooperation of another person, it is very useful to identify some goal or objective that you share with that other person, which can be called a common goal, or a goal that you have in common.</span>
6 0
3 years ago
lindsay took out a(n) to purchase her new home she use in the form of the property to back the leon lindsay also paid money in a
Afina-wow [57]

Answer: Lindsay took out a Loan to purchase her new home. Lindsay also paid money in advance this is known as a down payment. If Lindsay dose not make her loan payment on time the bank will most likely ​foreclose.

6 0
3 years ago
Read 2 more answers
Other questions:
  • The proposition that an increase in the federal budget deficit caused entirely by a current tax cut has no effect on aggregate d
    12·1 answer
  • Connors Corporation acquired manufacturing equipment for use in its assembly line. Below are four independent situations relatin
    15·1 answer
  • Hawk-Dove (or Chicken) (t = tough, c = concede)
    14·1 answer
  • The decision to purchase a good or service or a customer benefit package is based on an assessment by the customer of the percei
    6·1 answer
  • What percentage of greek students would participate in a hazing activity, even if it made them uncomfortable?
    9·1 answer
  • Harry's competitive math team has been ranked the number one team for the past 40 days. His team competes in a math competition
    13·1 answer
  • A rapid increase in the money supply may lead to a(n):
    15·1 answer
  • Jose wanted to make a graph to show his budget for the month. what type of graph would be the most appropriate to graph for jose
    7·2 answers
  • A consumer equilibrium is a situation in which a consumer has allocated​ _____ of her income in a way that​ _____. A. ​all; maxi
    15·2 answers
  • a market is considered to be a(n) when the largest four firms in an industry control more than 40% or more of the market..
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!