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I need the solution and the answer of this question. I am in a hurry, so quick response will be appreciated. Thank you! Postage Co.
I need the solution and the answer of this question. I am in a hurry, so quick response will be appreciated. Thank you!
Postage Co. owns 70% of Stamp Co. Postage's tax rate is 45%, Stamp's tax rate is 35%. In 2020, Stamp Co. had sales of $250,000 to Postage, earning a gross profit of 25%. At the end of 2020, Postage Co. had sold 70% of this inventory to Letterhead Co., an unrelated third party and the remainder was included in Postage's year-end inventory. The remainder was sold in 2021. Ignoring the effect of income taxes, what is the total unrealized profit resulting from this inter-company transaction, that must be eliminated for consolidation purposes at Dec 31, 2020? As a continuation of the previous question, Before elimination entries are prepared, by how much are Stamp's 2,020 sales overstated? As a continuation of the previous question, For the year ended Dec 31, 2021, what is the total impact of the elimination entries necessary to eliminate this inter-company transaction on the NCSHI Dec 31, 2,021 balanceStep by Step Solution
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