Clark Co. had the following transactions with affiliated parties
during year 1:
• Sales of $60,000 to Dean, Inc., with $20,000 gross profit.
Dean had $15,000 of this inventory on hand at year-end.
Clark owns a 15% interest in Dean and does not exert
• Purchases of raw materials totaling $240,000 from Kent
Corp., a wholly owned subsidiary. Kent’s gross profit on
the sale was $48,000. Clark had $60,000 of this inventory
remaining on December 31, year 1.
Before eliminating entries, Clark had consolidated current assets
of $320,000. What amount should Clark report in its December
31, year 1 consolidated balance sheet for current assets?