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Par Inc owns 82.39% of Sub Corp. During the year, Par sold inventory to Sub for $123,062. Exactly 51.79% of this inventory remained in Y's
Par Inc owns 82.39% of Sub Corp. During the year, Par sold inventory to Sub for $123,062. Exactly 51.79% of this inventory remained in Y's warehouse at year end. Sub sold inventory to Par for $61,537 of which 43.43% remained in X's warehouse at year end. Both companies are subject to a tax rate of 30.99%. The gross profit percentage on sales is 20% for both companies. What is the after-tax dollar value of Par's realized profits during the year on its sales to Sub? a. $7,574 b. $8,188 c. $8,393 d. $7,779 e. $7,984
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