FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Investor owns 40 % of Investee and applies the equity method. In 2012 , Investee sells merchandise costing $50,000 to Investor for $70,000. Investor's ending

Investor owns 40% ofInvestee and applies the equity method. In 2012,Investee sellsmerchandise costing $50,000 toInvestorfor $70,000.Investor'sending inventory includes $30,000 purchased from investee. What amount of unrealized gross must be deferred in the equity method entry?

Correct answer: $4,000

why?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Managerial Accounting

Authors: Karen BraunWendy Tietz

3rd Edition

0132890542, 978-0132890540

More Books

Students also viewed these Accounting questions

Question

★★★★★
What risks do small firms face when partnering with large, successful companies? What risks do large companies take when they rely on small firms as a source of innovation?

Answered: 1 week ago

Question

★★★★★
Graph the complex number and find its absolute value. 4 - i

Answered: 1 week ago

Question

★★★★★
Let A and B be two disjoint events in a sample space . Prove that P(AB) = P(A) + P(B) 1.

Answered: 1 week ago

Question

★★★★★
Should the SEC selectively prosecute companies, organizations, or individuals to encourage compliance with legal or professional standards? Defend your answer

Answered: 1 week ago

Question

★★★★★
Accounting for Stock Issuances Plesko Corporation reported the following transactions relating to its stock accounts during the year. Jan. 31 Issued 10,000 shares of $5 par value common stock at $17...

Answered: 1 week ago

Question

★★★★★
dont copy i will downbvote if you copy What is the IRS's requirement for tax reporting regarding the choice of a denominator-level capacity concept

Answered: 1 week ago

Question

★★★★★
Multi-step Income Statements The adjusted trial balance of Mally Distributors on December 31 is shown below. MOLLY DISTRIBUTORS Adjusted Trial Balance December 31 Debit Credit $30,200 Cash Accounts...

Answered: 1 week ago

Question

★★★★★
48 Assume that the actual amount of one of a company's variable expenses was $45,198. The company's planned level of activity was 19,000 machine-hours, and its actual level of activity was 18,500...

Answered: 1 week ago

Question

★★★★★
According to corporate policy, the average age of trade receivables and trade payables should both be 10 days and 20 days, respectively. At 30th June 2022, the Exeter hotel had trade receivables of...

Answered: 1 week ago

Question

★★★★★
A critical reflection on how you have developed personally and professionally from human service organization placement. Consider questions such as: What soft skills (for eg., communication,...

Answered: 1 week ago

Question

★★★★★
Fake Racing Hoax Racing Direct materials $7 500 $10 000 Direct labour $13 000 $12 500 Number of inspections 4 2 Number of set-ups 3 1 Number of machine hours 2000 4 500 Number of engineering 130 50...

Answered: 1 week ago

Question

★★★★★
8. Give an example of how the scarcity principle can be used to influence others.

Answered: 1 week ago

Question

★★★★★
2. A Soviet invasion of Poland would lead to the severing of diplomatic relations between the United States and the Soviet Union.

Answered: 1 week ago

Question

★★★★★
1. Diplomatic relations between the United States and the Soviet Union would be severed in 1993 than that

Answered: 1 week ago

Previous Question Next Question