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Gargiulo Company, a 90% owned subsidiary of Posito Corporation, transfers inventory to Posito at a 25% gross pront rate 7he following data are available pertaining

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Gargiulo Company, a 90% owned subsidiary of Posito Corporation, transfers inventory to Posito at a 25% gross pront rate 7he following data are available pertaining specifically to Posito's intra-entity purchases from Gargiulo. Gargiulo was acquired on January 1. 2017. Ye 2017 8,000 1,200 2018 12,000 4,000 2019 15,000 3,000 Purchases by Posito S S Ending inventory on Posito's books Assume the equity method is used. The following data are available pertaining to Gargiulo's income and dividends. 2017 2018 2019 Gargiulo's net income Dividends paid by Gargiulo S 70,000 10,000 $ 85,000 10,000 94,000 15,000 12) For consolidation purposes, what amount would be debited to cost of goods sold for the 2018 consolidation worksheet with regard to the unrecognized intra-entity gross profit remaining in ending inventory with respect to the 2018 transfer of merchandise? E) $3,000 12) B) $900. A) $800. C) $1,000. D) $2,400. Gargiulo Company, a 90% owned subsidiary of Posito Corporation, transfers inventory to Posito at a 25% gross pront rate 7he following data are available pertaining specifically to Posito's intra-entity purchases from Gargiulo. Gargiulo was acquired on January 1. 2017. Ye 2017 8,000 1,200 2018 12,000 4,000 2019 15,000 3,000 Purchases by Posito S S Ending inventory on Posito's books Assume the equity method is used. The following data are available pertaining to Gargiulo's income and dividends. 2017 2018 2019 Gargiulo's net income Dividends paid by Gargiulo S 70,000 10,000 $ 85,000 10,000 94,000 15,000 12) For consolidation purposes, what amount would be debited to cost of goods sold for the 2018 consolidation worksheet with regard to the unrecognized intra-entity gross profit remaining in ending inventory with respect to the 2018 transfer of merchandise? E) $3,000 12) B) $900. A) $800. C) $1,000. D) $2,400

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