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Kean Corp. owns 80% of Lavender Corp.'s common stock. During October, Lavender sold merchandise to Kean for $120,000. At December 31, one-third of the merchandise
Kean Corp. owns 80% of Lavender Corp.'s common stock. During October, Lavender sold merchandise to Kean for $120,000. At December 31, one-third of the merchandise remained in Kean's inventory. For the year, gross profit percentages were 25% for Kean and 30% for Lavender. The amount of unrealized intra-entity profit in ending inventory at December 31 that should be eliminated in consolidation is Choices: $8,000 $9,600 $12,000 $10,000
Choices:
$8,000
$9,600
$12,000
$10,000
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