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Help Save & Exit Anderson Company, a 90% owned subsidiary of Philbin Corporation, transfers inventory to Philbin at a 25% gross profit rate. The following

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Help Save & Exit Anderson Company, a 90% owned subsidiary of Philbin Corporation, transfers inventory to Philbin at a 25% gross profit rate. The following data are available pertaining specifically to Philbin's intra-entity purchases from Anderson Anderson was acquired on January 1, 2020, Purchases by Philbin Ending inventory on Philbin's books 2020 2021 2022 $8,000 $12,000 $15,000 1,200 4,000 3,000 Assume the equity method is used. The following data are available pertaining to Anderson's income and dividends. 2020 2021 2022 $70,000 $85,000 $94,000 Anderson's net income Dividends paid by Anderson 10,000 10,000 15,000 For consolidation purposes, what amount would be debited to January 1 retained earnings for the 2021 consolidation worksheet entry with regard to the unrecognized intro-entity gross profit remaining in ending inventory with respect to the 2020 Intra-entity transfer of merchandise? Multiple Choice $240 een

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