Homework Answers
Answer- B. $1,091,500.
Explanations-
Consolidated Revenue = $750,000 + $440,000 - $ 98,500
= $ 1,190,000 - $ 98,500
= $ 1,091,500.
Note-
In consolidation of revenue, the revenue is added line by line. And if there is intergroup sale, it should be eliminated. Since Adamson sales goods worth $ 98,500 to Skyview, it is reflecteing in the revenue of Adamson , therefore while consolidating revenue the sale of $ 98,500 should be eliminated by reducing them from consolidated total revenue.
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