Question
A US company owns an 80% interest in a company located on mars. Martian currency is called The Martian credit. During the year the parent
A US company owns an 80% interest in a company located on mars. Martian currency is called The Martian credit. During the year the parent company sold inventory that cost $24,100 to the subsidiary on account for $29,600 when the exchange rate was 0.5192. The subsidiary still held one half of the inventory and had not paid the parent company for the purchase at the end of the fiscal. The unsettle account is denominated in dollars. The exchange rate at fiscal year and was 0.4994 compute the amount of intercompany profit to be eliminated in The Consolidated statement work paper prepared for the current year
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