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Business, 19.10.2021 01:00 valenzueladomipay09u

Mom owns 100% of the capital stock of both Daughter Corp. and Son Corp. Daughter purchases merchandise inventory from Son at 140% of Son's cost. During year 1, merchandise that cost Son $40,000 was sold to Daughter. Daughter sold all of this merchandise to unrelated customers for $81,200 during year 1. In preparing combined financial statements for year 1, Mom's bookkeeper disregarded the common ownership of Daugher and Son. By what amount was unadjusted revenue overstated in the combined income statement for year 1

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Mom owns 100% of the capital stock of both Daughter Corp. and Son Corp. Daughter purchases merchandi...
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