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A Company owns 80% of B Company. A acquired this 80% of B at book value. (Fair value equaled book value equaled the acquisition price
A Company owns 80% of B Company. A acquired this 80% of B at book value. (Fair value equaled book value equaled the acquisition price at the date of acquisition). During the year, B sold goods costing $1500 to A at a gross profit of 30%. A had 25% of these goods on hand at the end of the year.
What is the amount of profits in 2018 A's ending inventory that must be deferred from this sale?
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