Blue Company owns 80 percent of the common stock of White Corporation. During the year, Blue reported sales of $1,000,000, and W

Question

4 years ago

12

Blue Company owns 80 percent of the common stock of White Corporation. During the year, Blue reported sales of $1,000,000, and W

hite reported sales of $500,000, including sales to Blue of $80,000. The amount of sales that should be reported in the consolidated income statement for the year is:
A. $500,000.
B. $1,300,000.
C. $1,420,000.
D. $1,500,000.

Business

1 answer:

Serggg [28] · Answer 1 · 2021-11-28T15:09:54+03:00

Answer:

C. $1,420,000

Explanation:

Blue Company sales consolidated income statement for the year

Blue Sales of $1,000,000

White sales $500,000

Less sales to blue by white ($80,000)

Amount of sales to be reported $1,420,000

Therefore the amount of sales that should be reported in the consolidated income statement for the year is: $1,420,000