BD_Imports Inc. sold $180,000 in inventory to Black & Decker during 2010, for $270,000. Black & Decker resold $108,000 of this merchandise in 2010 with the remainder to be disposed of during 2011.
Required:
Assuming BD_Imports owns 25% of Black & Decker and applies the equity method, prepare the journal entry BD_Imports should have recorded at the end of 2010 to defer the unrealized intra-entity inventory profit.