iii. During 2020, X Company, which is 90% owned by Y Company, sold inventory to its parent for $1,000,000 at a 25% mark-up on cost and 30% of these goods remained in Y's inventory at the year end. Both companies enjoy a tax rate of 40% and have fiscal year ends on December 31. Inventory turns frequently during the course of a year. What is the before tax profit in the ending inventory in 2020? i. A deduction of $75,000 ii. A deduction of $60,000 iii. A deduction of $45,000 iv. A deduction of $36,000. iv. What increase to consolidated income in 2021 is caused by the above transaction during 2020? i. An addition of $108,000 ii. An addition of $60,000 iii. An addition of $36,000 iv. An addition of $32,400. V. The X Company acquired 100% of the shares of the Y Company. X Company paid lawyers and appraisers for assistance in negotiating and financing this transaction. How should X account for these costs on its separate entity financial statements? i. Deferred charges ii. Professional fees expense iii. Additional costs of the investment in Y lv. Goodwill