Question
Investor owns 40% of Investee and applies the equity method. In 2016, Investor sells merchandise costing $210,000 to Investee for $280,000. Investee's ending inventory includes
Investor owns 40% of Investee and applies the equity method. In 2016, Investor sells merchandise costing $210,000 to Investee for $280,000. Investee's ending inventory includes $60,000 purchased from Investor. What amount of unrealized gross profit must be deferred in the equity method entry?
a. $ 6,000
b. $ 7,000
c. $60,000
d. $15,000
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People Centric Skills Interpersonal And Communication Skills For Financial Professionals
Authors: Danny M. Goldberg
2nd Edition
1119669308, 978-1119669302
