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Question - On 1/1/2020, Co. X acquired 80% of the voting stock of Co. Y. The book value and the fair value of net assets were equal, except for inventories which had a book value less than its fair value by $10,000. On December 31, 2020, the cost of goods sold of Co. X and Co. Y were $120,000 and $80,000, respectively. If 75% of inventories were sold during 2020, determine the consolidated cost of goods sold?
A- $200,000
B- $206,000
C- $207,500
D- $210,000
What is the revaluation surplus on December 31, 2019? Assets have been carried at cost since their acquisition. All assets were acquired on January 1, 2009.
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