Question
A owns 30% of the stock of B. During the year, A sold inventory to B for $ 96,000. A charges a profit of 20%
A owns 30% of the stock of B. During the year, A sold inventory to B for $ 96,000. A charges a profit of 20% on cost. At the end of the year, B had $ 24,000 of the inventory still on hand. What is the unrealized profit on this sale?
(A) $ 1,200
(B) $ 1,440
(C) $ 16,000
(D) $ 19,200
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Financial Accounting
Authors: Dr Carl S. Warren, Dr James M. Reeve, Philip E. Fess
9th Edition
032418803X, 978-0324188035
