(Solution) - For the current year ended September 30 the results of -(2025 Original AI-Free Solution)

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For the current year ended September 30, the results of operations of Tennessee Corporation, and its wholly owned subsidiary, Volunteer Enterprises, are as follows:

During the year, Tennessee sold merchandise to Volunteer for $45,000. The merchandise was sold by Volunteer to nonaffiliated companies for $60,000. Tennessee?s interest revenue was realized from a long-term loan to Volunteer.
a. Determine the amounts to be eliminated from the following items in preparing a consolidated income statement for the current year:
(1) Sales
(2) Cost of merchandise sold.
b. Determine the consolidated netincome.