Question
Company P owns 75% of the outstanding common stock of Company S. During 19X5, Company P's profits on its inventory sales to Company S were
Company P owns 75% of the outstanding common stock of Company S. During 19X5, Company P's profits on its inventory sales to Company S were $50,000. All merchandise purchased by Company S has been sold to outside parties. The elimination for intercompany profit on the transaction is
| a. | not necessary | |
| b. | $50,000 | |
| c. | $37,500 | |
| d. | allocated between Company P and the minority stockholders |
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Hotel And Restaurant Accounting
Authors: Cole Raymond
8th Edition
0866125531, 9780866125536
