Top Company holds 90 percent of Bottom Companys common stock. In the current year, Top...
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Top Company holds 90 percent of Bottom Companys common stock. In the current year, Top reports sales of $870,000 and cost of goods sold of $652,500. For this same period, Bottom has sales of $327,000 and cost of goods sold of $196,200. During the current year, Bottom sold merchandise to Top for $118,000. The parent still possesses 25 percent of this inventory at the current year-end. Bottom had established the transfer price based on its normal gross profit rate. What are the consolidated sales and cost of goods sold?
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