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A home office transfers inventory to its branch at a 20% markup on cost. During 2018, inventory costing the home office P80,000 was transferred to
A home office transfers inventory to its branch at a 20% markup on cost. During 2018, inventory costing the home office P80,000 was transferred to the branch. At year-end, the home office adjusted its Unrealized Intercompany Inventory Profit account downward by P18,200. The branch's year-end balance sheet shows P4,800 of inventory acquired from the home office.
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The branch acquired P4800 of inventory from the home office at a 20 markup on cost so the cost of th...
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Financial Reporting and Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
7th edition
1259722651, 978-1259722653
