Acc 266 2 draft - Study guides, Class notes & Summaries

ACC 266 2 draft Exam Questions and Answers Red Inc. owns 80% of White Company's outstanding common stock. Red reports cost of goods sold in the current year of $425,000 while White Co. reports $260,000. During the current year, Red Inc. sells inventory costing $125,000 to White Co. for $187,500. 60% of these goods are not resold by White Company until the following year. What is consolidated cost of goods sold? A) $685,000 B) $497,500 C) $460,000 D) $535,000 E) $910,000 - ANSWER ...