Explain what happens to the gross profit on the sale, Accounting Basics

+44 141 628 6080
[email protected]

Explain what happens to the gross profit on the sale

During 2012, Edwards Co. sold inventory to its parent company, Forsyth Corp. Forsyth still owned all of the inventory at the end of 2012.Explain what happens to the gross profit on the sale when consolidated financial statements are prepared at the end of 2012. Whay is the gross profit treated this way?

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Explain what happens to the gross profit on the sale

Reference No:- TGS0558948

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Accounting Basics

Q : Manufacturing the gas cooker and the charcoal smoker

Determin the total and per-unit cost of manufacturing the gas cooker and charcoal smoker for the month, assuming all manufacturing orvehead is assigned on the basis of direct labor cost.

Q : Silver should recognize depreciation expense

On January 1, 2014, XYZ Company leased a building to Silver Trading Inc. The lease arrangement is for 10 years. The leased building cost $4,000,000 and was purchased for cash on January 1, 2014.

Q : How much cash would simon receive on issuance date

On May 1, 2014, Simon Company issued $200,000 of 9%, 10-year bonds dated January 1 at par plus accrued interest. Interest is payable semiannually on July 1 and January 1.

Q : What is the reason for the apparent inconsistency

What is the reason for the apparent inconsistency between the fund types in which the revenues and expenses are reported?

Q : Explain what happens to the gross profit on the sale

During 2012, Edwards Co. sold inventory to its parent company, Forsyth Corp. Forsyth still owned all of the inventory at the end of 2012.

Q : Complete an incremental analysis of the special order

What is the lowest price that Marin could accept for the special order to earn net income of $1.18 per unit? Complete an incremental analysis of the special order.

Q : Amount of suta tax the company must pay to florida

Company's SUTA tax rates based on its experience ratings are 3.2% in Louisiana and 3.8% in Florida. The taxable wage limits are $7,700 in Louisiana and $8,000 in Florida.

Q : Explain the suta rate in yengling companys state

Yengling Company's payroll for the year is $593,150. Of this amount, $211,630 is for wages paid in excess of $7,000 to each individual employee.

Q : Evaluate the contribution rate

Due to its experience rating, Ianelli, Inc., is required to pay unemployment taxes on its payroll as follows: Under SUTA for New Mexico on taxable payroll of $28,000, the contribution rate is 3.9%.

1961709

Questions
Asked

3,689

Active Tutors

1435146

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Medication for postoperative nausea and vomiting

Question: Which medication for postoperative nausea and vomiting (PONV) is contraindicated for use in the pediatric population?

Child prescribed prednisone for exacerbation of asthma

Question: Which adverse reaction would the nurse monitor for in a child prescribed prednisone for exacerbation of asthma?

What if a parent of hispanc origin informs nurse of plans

Which action would the nurse perform if a parent of hispanc origin informs the nurse of plans to wean their 10-month-old child by giving anise tea

How health care reimbursement is delivered

The revenue cycle involves many steps, and each step has a critical role in how health care reimbursement is delivered.

How to improve overall health of elementary school children

According to Healthy People health indicators, which area would the nurse include to improve the overall health of elementary school children?

How would you instruct the patient to taper off clonazepam

How would you instruct the patient to taper off clonazepam? What other medication would you recommend for the patient for the treatment

How to prevent interference with an intravenous infusion

Which action would the nurse take in providing care for an 8-month-old infant restrained to prevent interference with an intravenous infusion?