Pepper Corporation owns 75 percent of Salt Company's voting shares. During 20X8, Pepper produced 50,000 chairs at a cost of $79 each and sold 35,000 chairs to Salt for $90 each. Salt sold 18,000 of the chairs to unaffiliated companies for $117 each prior to December 31, 20X8, and sold the remainder in early 20X9 to unaffiliated companies for $130 each. Both companies use perpetual inventory systems. Based on the information given above, what amount of cost of goods sold must be eliminated from the consolidated income statement for 20X9? Multiple Choice A. $221,000 B.$1,422,000 C.$187,000 D.$2,963,000

The Peggy Company sold merchandise to its wholly owned subsidiary, Sally Company. The following information is available: Sale price to Sally $36,000 Cost to Peggy $27,000 Sally sold 70 % of the inventory to an outside customer for $25,200. Prepare the elimination journal entry. If the other 30% was sold to an outside customer during the next year and there was not any other inter-co transactions what would be the journal entry next year?

Patient Company holds 60% of Speedy Company stock. Patient has sold inventory to Speedy Company as follows: Percent of Sold Sales Inventory Cost to Price to Held at Speedy $203,000 $355,000 $208,000 $312,000 $120,000 $150,000 $150,000 $250,000 Year Patient Year end 2017 30% 2018 40% 2019 25% 2020 40% The following balances were included in the individual financial statements of each company for the year ended 12/31/2020: Speedy $ 5,500,000 3,800,000 $ 3,570,000 2,300,000 Patient Sales Cost of goods sold Merch. inventory 2$ 580,000 380,000 a. What will be reported as consolidated sales in the year 2020? b. What will be reported as consolidated inventory at 12/31/2020? c. What will be reported as consolidated cost of goods sold for 2020? d. Were the intra-entity sales of inventory items upstream or downstream?