During 2006, Jones Company engaged in the following transactions:
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Salary expense to key employees who are also principal owners |
$100,000 |
|
Sales to affiliated enterprises |
250,000 |
Which of the two transactions would be disclosed as related-party transactions in Jones’ 2006 financial statements?
- Neither transaction.
- The $100,000 transaction only.
- The $250,000 transaction only.
- Both transactions.