Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik

Exercise 28

Barker Company owns 80 percent of the outstanding voting stock of Walden Company. During the current year, intra-entity sales amount to $100,000.These transactions were made with a gross profit rate of 40 percent of the transfer price. Inconsolidating thetwo companies, what amount of these sales would be eliminated