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What amount of sales will be reported

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Question - Binary Company acquired 7 5 percent ownership of Fordham Corporation in 20X5, at underlying book value. On that date, the fair value of the non-controlling interest was equal to 25 percent of the book value of Fordham Corporation. Binary purchased inventory from Fordham for $150,000 on July 24, 20X6, and resold 90 percent of the inventory to unaf?liated companies on November 11, 20X6, for $160,000.

Fordham produced the inventory sold to Binary for $120,000. The companies had no other transactions during 20X6.

Based on the information given above, what amount of sales will be reported in the 20X6 consolidated income statement?

A. $120,000

B. $135,000

C. $150,000

D. $160,000

Reference no: EM132499012

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