Consolidated balance sheet for current assets

Assignment Help Financial Accounting

Reference no: EM13746838

During the current year, ABC Corporation sold inventory costing $80,000 to DEF for $100,000. ABC owns 80 percent of the outstanding shares of DEF Corporation. DEF has paid ABC and DEF still has all of this inventory on the last day of the year. At the balance sheet date, ABC has total current assets of $600,000 whereas DEF has total current assets of $500,000. Assume that there were no allocations established at the date of acquisition. What is the total amount reported on the consolidated balance sheet for current assets?

A $1,000,000

B $1,090,000

C $1,080,000

D $1,100,000

Reference no: EM13746838

Questions Cloud

What MACRS convention applies to the new car : On February 15, 2013, Leo purchased and placed in service a new car that cost $23,750. The business use percentage for the car is always 100%. He does take the additional first-year depreciation. What MACRS convention applies to the new car?

Who is the director of the battleship potemkin : Who is The director of The Battleship Potemkin. Which European avant-garde movement of the silent era did not arise within a commercial film industry?

Impact on net consolidated income created by this transfer : ABC owns 100% of the outstanding shares of DEF Co. On January 1, Year One, ABC transfers a building to DEF for its fair value of $500,000. At that date, ABC was reporting this building at a net book value of $400,000 with no residual value and a rema..

What types of medical expenses are deductible : What types of medical expenses are deductible? Explain the rules governing medical deductions. What limitations are applied? Provide examples and explain

Consolidated balance sheet for current assets : During the current year, ABC Corporation sold inventory costing $80,000 to DEF for $100,000. ABC owns 80 percent of the outstanding shares of DEF Corporation. DEF has paid ABC and DEF still has all of this inventory on the last day of the year.

Internal and external equity comparison : Internal and External Equity Comparison-Explain how each plan supports that organization's total compensation objective and the relationship of the organization's financial situation to its plan

What is the carrying value of the bonds : Garland Company received proceeds of $188,000 on 10-year, 6% bonds issued on January 1, 2013. The bonds had a face value of $200,000, pay interest semi-annually on June 30 and December 31. Garland uses the straight-line method of amortization. What i..

A summary of the reason for and nature of the contract : The U.S. government employs a large number of contractors throughout many different departments. Unfortunately, not all contractors are scrupulous when seeking reimbursement for costs incurred during their contract period. Your reading covered four e..

Advantages and disadvantages of any solution employed : ABC Institute of Research has sensitive information that needs to be protected from its rivals. Describe the advantages and disadvantages of any solution employed

User Account

All Pages