Reference no: EM132696639

Dean Company acquired 100% of Morey Company in the prior year. During the current year, the individual entities included in their financial statements the following:

                                     Dean            Morey

Key officers' salaries 750,000        500,000

Officers' expenses 200,000          100,000

Loans to officers 1,250,000        500,000

Intercompany sales 1,500,000

Problem 1: What total amount should be reported as related party disclosures in the notes to Dean Company's consolidated financial statements for the current year?

a. 1,500,000 b. 1,550,000 c. 1,750,000 d. 3,000,000