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A Company own 90% of the outstanding shares of B Company and 80% of the outstanding shares of C Company. The companies sell goods to each other. For the current year, A sold goods to C for P250,000 at a 40% mark-up. C sold 70% of the goods to B for P250,000. B in turn sold 65% of the goods to outside parties for P300,000.
problem 1: Compute for the consolidated cost of sales.
a) 274,120b) 50,120c) 59,528d) 283,528
problem 2: Compute the consolidated gross profit.
a) 149,880b) 240,472c) 249,880d) 140,472
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