Edgar co acquired 60 of stendall co on january 1 2011

Reference no: EM13589003

Edgar Co. acquired 60% of Stendall Co. on January 1, 2011. During 2011, Edgar made several sales of inventory to Stendall. The cost and selling price of the goods were $140,000 and $200,000, respectively. Stendall still owned one-fourth of the goods at the end of 2011. Consolidated cost of goods sold for 2011 was $2,140,000 because of a consolidating adjustment for intra-entity sales less the entire profit remaining in Stendall's ending inventory.
How would consolidated cost of goods sold have differed if the inventory transfers had been for the same amount and cost, but from Stendall to Edgar?

Select one:

a. Consolidated cost of goods sold would have remained $2,140,000.

b. Consolidated cost of goods sold would have been more than $2,140,000 because of the controlling interest in the subsidiary.

c. Consolidated cost of goods sold would have been less than $2,140,000 because of the non-controlling interest in the subsidiary.

d. Consolidated cost of goods sold would have been more than $2,140,000 because of the non-controlling interest in the subsidiary.

e. The effect on consolidated cost of goods sold cannot be predicted from the information provided.

Reference no: EM13589003

Questions Cloud

Internet case-calpers while the examples in this have : internet case-calpers. while the examples in this have focused on a single-employer plan many states operate statewide

You purchased an mri scanner two years ago for 20 million : you purchased an mri scanner two years ago for 2.0 million. the mri has a 5-year depreciable life with no salvage

Two equal point charges of magnitude 40 microc are situated : question two equal point charges of magnitude 4.0 microc are situated along the x-axis at x1 -2.0 m and x2 -2.0 m.

If you are harry potter what method of accounting do you : on 111990 the auf wiederschen company was founded in munich germany. this company makes those were 1 sponge hands that

Edgar co acquired 60 of stendall co on january 1 2011 : edgar co. acquired 60 of stendall co. on january 1 2011. during 2011 edgar made several sales of inventory to stendall.

The crestar company reported net income of 87400 on 18000 : the crestar company reported net income of 87400 on 18000 outstanding common shares. preferred dividends total 11800.

The charging circuit for the flash system of a camera uses : question the charging circuit for the flash system of a camera uses a 130uf capacitor that is charged from a 250v power

How will this 200000 us dollar difference be shown on the : 1 under gaap when a company installs safety andor environmental devices in excess of what the law mandates it is

You are part of a group of individuals incorporators who : you are part of a group of individuals incorporators who want to form a new corporation. during discussions on forming

User Account

All Pages