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King Corporation owns 80 percent of Lee Corporations common stock. During October, Lee sold merchandise to King for $205,000. At December 31, 60 percent of
King Corporation owns 80 percent of Lee Corporations common stock. During October, Lee sold merchandise to King for $205,000. At December 31, 60 percent of this merchandise remains in Kings inventory. Gross profit percentages were 30 percent for King and 40 percent for Lee. The amount of unrealized intra-entity profit in ending inventory at December 31 that should be eliminated in the consolidation process is $49,200. $36,900. $82,000. $39,360
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