Question
A sells inventory to B for $120,000 and charges profit at 20% of the cost. At the end of the year, B has $ 18,000
A sells inventory to B for $120,000 and charges profit at 20% of the cost. At the end of the year, B has $ 18,000 of the inventory still on its books.
What is A's total profit on this sale?
a. $3,000
b. $20,000
c. $24,000
d. $3,600
A sells inventory to B for $120,000 and charges profit at 20% of cost. At the end of the year, B has $ 18,000 of the inventory still on its books.
What is A's unrealized profit on this sale?
a. $3,000
b. $20,000
c. $24,000
d. $3,600
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Survey Of Accounting
Authors: Carl S. Warren
4th Edition
0538478144, 9780538478144
