Cayman Inc. bought 30% of Maya Company on January 1, 2013 for $450,000. The equity method of accounting was used. The book value and fair value of the net assets of Maya on that date were $1,500,000. Maya began supplying inventory to Cayman as follows:

		Cost to		Transfer		Amount Held by
Year		Maya		Price		Cayman at Year-End
2013		$30,000		$45,000		$ 9,000
2014		$48,000		$80,000		$20,000

Maya reported net income of $100,000 in 2013 and $120,000 in 2014 while paying $40,000 in dividends each year.

Give detailed calculation

25. What is the amount of unrealized intra-entity inventory profit to be deferred on December 31, 2013?

A) $ 900.

B) $3,000.

C) $4,500.

D) $6,000.

E) $9,000.

26. What is the amount of unrealized inventory profit to be deferred on December 31, 2014?

A) $1,500.

B) $2,400.

C) $3,600.

D) $4,000.

E) $8,000.