Ariel owns 70% of Sabastian. During 2019, Sabastian sold 1000 units of inventory to Ariel for $70 each. The units cost $50 to produce. A
Ariel owns 70% of Sabastian. During 2019, Sabastian sold 1000 units of inventory to Ariel for $70 each. The units cost $50 to produce. A 12/31/2019 inventory count should indicate that 300 units remained in Ariels inventory. S reported a $50,000 net income in 2019. Ariel should recognize income in 2019 for which of the following amounts?
Investment in Sabastian $35,000
...investment income. $35,000
Investment in Sabastian $30,800
...Investment Income $30,800
21,000
None of the above
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Authors: Carl S. Warren, James M. Reeve, Philip E. Fess
20th Edition
0324025424, 978-0324025422
