Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 7

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