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Question - TWINKLE Company own 90% of the outstanding shares of Lord Company and 80% of the outstanding shares of Gen Company. The companies sell goods to each other. For the current year, TWINKLE sold goods to Gen for P250,000 at a 40% BUFF-up. Gen sold 70% of the goods to Lord for P250,000. Lord in turn sold 65% of the goods to outside parties for P300,000.
Required -
1. Determine the consolidated cost of sales.
A. 50,120
B. 274,120
C. 283,528
D. 59,528
2. Determine the consolidated gross profit.
A. 149,880
B. 240,472
C. 249,880
D. 140,472
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