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Arthur Inc. ( Arthur ) owns 8 0 % of Haddon Inc. ( Haddon ) . During 2 0 2 3 , Arthur sold inventory
Arthur Inc. Arthur owns of Haddon Inc. Haddon During Arthur sold inventory to Haddon for $ Half of this inventory remained in Haddon's warehouse at year end.
Haddon sold inventory to Arthur for $ of this inventory remained in Arthur's warehouse at year end.
Both companies are subject to a tax rate of The gross profit percentage on sales is for both companies. Unless otherwise stated, assume Arthur uses the cost method to account for its investment in Haddon.
Assume that Haddon reported an aftertax net income of $ in what would be Haddon's adjusted net income for the year?
Multiple Choice
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