Question
P sold merchandise to S for $90,000. Gross profit rate is 40%. At year end 50% of this remains unsold. The tax rate is 40%.
P sold merchandise to S for $90,000. Gross profit rate is 40%. At year end 50% of this remains unsold. The tax rate is 40%. What is the before tax and after tax unrealized profit in ending inventory?
Please show all the calculations for my better understanding. Thank you so much.
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Financial Accounting an introduction to concepts, methods and uses
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
13th Edition
978-0538776080, 324651147, 538776080, 9780324651140, 978-0324789003
