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Par Inc owns 79.51% of Sub Corp. During the year, Par sold inventory to Sub for $99,176. Exactly 49.63% of this inventory remained in Y's
Par Inc owns 79.51% of Sub Corp. During the year, Par sold inventory to Sub for $99,176. Exactly 49.63% of this inventory remained in Y's warehouse at year end. Sub sold inventory to Par for $49,591 of which 41.27% remained in X's warehouse at year end. Both companies are subject to a tax rate of 29.55%. The gross profit percentage on sales is 20% for both companies. What is the after-tax dollar value of Sub's unrealized profits during the year on its sales to Par?
a.
$2,740
b.
$2,667
c.
$2,812
d.
$2,884
e.
$2,956
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