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AB sold depreciable assets to XYZ on January 1, 2019 at an after-tax gain of $10,000. On January 1, 2020, XYZ sold depreciable assets to
- AB sold depreciable assets to XYZ on January 1, 2019 at an after-tax gain of $10,000. On January 1, 2020, XYZ sold depreciable assets to ABC at an after-tax gain of $20,000. Both assets are being depreciated over 10 years. The tax rate for both companies is zero. How much intercompany (after-tax) profit was realized during 2020 from Rin's 2019 sale of assets to XYZ? A. $9,000 B. $1,000 C. $2,000 D. $900
- Using the information in the previous question, what is the total amount of unrealized profit (after-tax) remaining at the end of 2020?
- A. Nil B. $26,000 C. $23,400 D. $30,000
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College Accounting A Practical Approach Chapters 1-15
Authors: Jeffrey Slater
7th Edition
0130954888, 978-0130954886
