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James Corporation owns 80 percent of Carl Corporations common stock. During October, Carl sold merchandise to James for $222,500. At December 31, 60 percent of
James Corporation owns 80 percent of Carl Corporations common stock. During October, Carl sold merchandise to James for $222,500. At December 31, 60 percent of this merchandise remains in Jamess inventory. Gross profit percentages were 10 percent for James and 20 percent for Carl. The amount of unrealized intra-entity profit in ending inventory at December 31 that should be eliminated in the consolidation process is
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