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4 votes
During 2014, a parent sells merchandise to its subsidiary at a 20

1) $600
2) $520
3) $480
4) $400

1 Answer

5 votes

Final answer:

This question pertains to merchandise sales between a parent and its subsidiary, focusing on intercompany transactions. Without additional context or numerical details regarding the cost of goods sold or sales price, it is not possible to accurately determine the profit or markup from the provided information.

Step-by-step explanation:

The subject of this question revolves around the concept of intercompany transactions, specifically related to merchandise sales between a parent and its subsidiary.

Such transactions require a careful assessment to ensure that profits resulting from these sales are correctly reported, taking into account possible markup and other considerations in consolidated financial statements.

The provided numbers do not contain enough context or information to accurately answer the question posted, as critical details are missing, such as the actual cost of the merchandise, the sales price, the quantity involved, and other necessary calculations to determine intercompany profit or markup.

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