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  3. top company holds 90 percent of bottom companys co

Top Company holds 90 percent of Bottom Companys common stock. In the current year, Top...

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Accounting

Top Company holds 90 percent of Bottom Companys common stock. In the current year, Top reports sales of $910,000 and cost of goods sold of $682,500. For this same period, Bottom has sales of $410,000 and cost of goods sold of $246,000. During the current year, Top sold merchandise to Bottom for $210,000. The subsidiary still possesses 50 percent of this inventory at the current year-end. Top 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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