Camille, Inc., sold $120,000 in inventory to Eckerle Company during 2020 for $200,000. Eckerle resold $85,000 of
Question:
Camille, Inc., sold $120,000 in inventory to Eckerle Company during 2020 for $200,000. Eckerle resold $85,000 of this merchandise in 2020 with the remainder to be disposed of during 2021. Assuming that Camille owns 30 percent of Eckerle and applies the equity method, what journal entry is recorded at the end of 2020 to defer the intra-entity gross profit?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 46% (13 reviews)
Ending inventory 200000 85000 115000 Gross profit percentage GP 800...View the full answer
Answered By
Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
Since 2012 I am providing home tutions.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Advanced Accounting
ISBN: 9781260247824
14th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Question Posted:
Students also viewed these Business questions
-
Tiberend, Inc., sold $150,000 in inventory to Schilling Company during 2017 for $225,000. Schilling resold $105,000 of this merchandise in 2017 with the remainder to be disposed of during 2018....
-
Tiberend, Inc., sold $150,000 in inventory to Schilling Company during 2012 for $225,000. Schilling resold $105,000 of this merchandise in 2012 with the remainder to be disposed of during 2013....
-
Tiberand, Inc., sold $150,000 in inventory to Schilling Company during 2010 for $225,000. Schilling resold $105,000 of this merchandise in 2010 with the remainder to be disposed of during 2011....
-
Randi Corp. is considering the replacement of some machinery that has zero book value and a current market value of $3,700. One possible alternative is to invest in new machinery that costs $30,900....
-
What is the fundamental basis on which we assign electrons to electron domains in pairs and with their spins paired?
-
Assume that the netting center uses a matrix of payables and receivables to determine the net payer or creditor position of each subsidiary at the date of clearing. The following table shows an...
-
Mitchell Inc. issued \(60,6 \%, \$ 1,000\) bonds on January 1,2020 . The bonds pay cash interest annually each December 31 and were issued to yield \(5 \%\). The bonds mature December 31, 2024, and...
-
Cawley Companys Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Cawley then assembles and packages such items as blenders...
-
5 Alteran Corporation purchased office equipment for \( \$ 12 \) milion at the beginning of 2022 . The equlpment is being depreciated over a 10-year life using the double-declining-balance method....
-
Required a). Consider using a simple moving average model. Experiment with models using five weeks and three weeks past data. (Round your answers to 2 decimal places.)rn b). Evaluate the forecasts...
-
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $190,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2021, Milani...
-
BuyCo, Inc., holds 25 percent of the outstanding shares of Marqueen Company and appropriately applies the equity method of accounting. Excess cost amortization (related to a patent) associated with...
-
The British Broadcasting Corp. (BBC) broadcast a TV program alleging that Terry Venables, a former professional soccer coach, had fraudulently obtained a 1 million loan by misrepresenting the value...
-
Which item(s) appears as a reconciling item(s) to the book balance in a bank reconciliation? a. Outstanding checks b. Deposits in transit C. Both a and b d. None of the above
-
Almance Technology sells the Solar Cat Eye System, which generates electrical power from solar cells built into the bright reflective lenses embedded in the sur- face of roadways to mark the travel...
-
A production line must produce 900 units every 10 hours of operating time. What is its cycle time in minutes?
-
The document that identifies and explains all differences between the companys record of cash and the banks record of that cash is the a. bank reconciliation. b. bank collection. C. bank statement....
-
A production line is to be designed to assemble a product. The assembly of this product requires three tasks, one of which requires 0.3 minutes to complete, one of which requires 1.4 minutes to...
-
The following divide-and-conquer algorithm is proposed for finding the simultaneous maximum and minimum: If there is one item, it is the maximum and minimum, and if there are two items, then compare...
-
Explain how the graph of each function can be obtained from the graph of y = 1/x or y = 1/x 2 . Then graph f and give the (a) Domain (b) Range. Determine the largest open intervals of the domain over...
-
Giant acquired all of Small's common stock on January 1, 2011. Over the next few years, Giant applied the equity method to the recording of this investment. At the date of the original acquisition,...
-
On January 1, 2014, Pinnacle Corporation exchanged $3,200,000 cash for 100 percent of the outstanding voting stock of Strata Corporation. On the acquisition date, Strata had the following balance...
-
On January 1, 2015, Brooks Corporation exchanged $1,183,000 fair-value consideration for all of the outstanding voting stock of Chandler, Inc. At the acquisition date, Chandler had a book value equal...
-
At a synoptic scale, the main characteristic that produces higher values of wind speeds is: Group of answer choices Strong presence of friction forces Strong pressure gradient Absence of friction...
-
Fireworks are... Group of answer choices low explosives, because they decompose at a relatively slow rate high explosives, because they decompose very rapidly low explosives, because they produce a...
-
On an average day, the high temperature occurs: Group of answer choices Around 8am when incoming and outgoing radiation becomes equal Around 4pm when incoming and outgoing radiation becomes equal...
Study smarter with the SolutionInn App