3. Par Corporation owns 80 percent of Sit\'s common stocok. During 2011, Par sol

Question

3. Par Corporation owns 80 percent of Sit's common stocok. During 2011, Par sold Sit $750,000 of nenry on the same terms as sales made to third parties. Sit sold 100 percent of the inventory purchased from Par in following information pertains to Sit's and Par's sales for 2011 2011. The Par Sit Sales Cost of sales $3,000,000 1,200,000 $1,800,000 $2,100,000 1,050,000 $1,050,000 What amount should Par report as cost of sales in its 2011 consolidated income statement? a $2,250,000 $2,040,000 $1,500,000 d $1,290,000

Explanation / Answer

Calculation of cost of sales to be reported by Par Corporation in its 2011 consolidated income statement Cost of sales of Par Corporation $1,200,000 Cost of sales of Sit (excluding inventory sold by Par ) $300,000 Cost of sales to be reported By Par Corporation $1,500,000 The answer is Option c.

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.