Financial Accounting

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Intercompany Transaction


SoccerWorld invested \$2,000,000 in Sports Co. to​ hold 60% of its outstanding voting shares in 2014.

In 2015, SoccerWorld had 150 sales transactions (total value \$850,000) and 100 of them were sales transactions to Sports Co. with a total value of \$500,000. All the products from these 100 sales transactions were still in the warehouse of Sports Co.

On the consolidated financial statement for SoccerWorld and Sports Co., what was the correct sales amount?