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6.1 Please answer question 3. Thanks! Big Ca. purchased 60% of Little Co. stock during 2022. During 2022, Little Co. sold inventory to Big Co
6.1 Please answer question 3. Thanks!
Big Ca. purchased 60% of Little Co. stock during 2022. During 2022, Little Co. sold inventory to Big Co for $100,000. The merchandise criginally cost Little Ca. $70,000. During 2022, Big Co resold 40% of this merchandise to third parties. The remainder was resold during 2023. Little Co reports eamings of $100,000 each year. Question 1 What was the total gross profit on the intercompany sale of merchandise in 2022? Question 2 How much of the gross profit was realized in 2022? Question 3 Assume that in 2023 there were no additional intercompamy sales of merchandise. What is the income to the NC Interest in 2023Step by Step Solution
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