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Dean Co. acquired 100% of Morey Corp. prior to Year 3. During Year 3, the individual companies included in their financial statements the following:
Dean Morey
Officers’ salaries $75,000 $50,000
Officers’ expenses 20,000 10,000
Loans to officers 125,000 50,000
Intercompany Sales 150,000
What amount should be reported as related party disclosures in the notes to Dean’s Year3 consolidated financial statements?
a. $150,000
b. $330,000
c. $175,000
d. $155,000
The answer is C. I wandering why intercompany sales is not related party transaction. Is will never be related party transaction?
AUD-74,75 11/2014
REG-80 04/2015
FAR-74, 91 11/2015
BEC-79 08/2015
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