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Apple Co. owns 40% of Pear Inc. During the fiscal year, Pear Inc. sold Inventory to Apple Co. for $800,000 (sales value to Pear Inc).
Apple Co. owns 40% of Pear Inc. During the fiscal year, Pear Inc. sold Inventory to Apple Co. for $800,000 (sales value to Pear Inc). Apple Co. is still in possession of 100% of this inventory. Pear Inc. marks up all its sales at 20% above cost. Assume a 20% tax rate.
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Cost Method journal entry Investment in Pear Inc 800000 Cash 800000 Equity Method journal entries In...
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0073379616, 73379611, 978-0697789938
