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In X1, Plus Company purchases 75% of the outstanding shares of Minus Company. The following intercompany inventory sales occurred: In X3, Plus sold merchandise to
In X1, Plus Company purchases 75% of the outstanding shares of Minus Company. The following intercompany inventory sales occurred: In X3, Plus sold merchandise to Minus with a profit of $10,000. 40% of the transferred units remained in Minus' inventory at the end of X3. In X4. Plus sold merchandise to Minus with a profit of $5.000. 30% of the transferred units remained in Minus' inventory at the end of X4. Assume the inventory is sold within a year. What would be the net impact of these two transactions on the consolidated Inventory of Plus for the year X4? None of these answers O(-) $1,125 (+) $1,875 (+) $2,500 O ) (+) $4,000 O(-) $1,500
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