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Grand Teton Inc. own 25% of Grand Canyon Inc. and applies the equity method. During the current Year, Grand Teton sold merchandise with a cost
Grand Teton Inc. own 25% of Grand Canyon Inc. and applies the equity method. During the current Year, Grand Teton sold merchandise with a cost of $120,000 to Grand Canyon for $180,000. At the end of the year Grand Canyon still hold half of that merchandise. What amount of gross profit should Grand Teton defer to next year?
a. 7,500
b. 15,000
c. 30,000
d. 60,000
e. all answers incorrect
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