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Pit Corporation owns 90% of Stop Company's outstanding common stock. On 08/28/21, Pit sold inventory to Stop in exchange for $650,000 cash. Pit had
Pit Corporation owns 90% of Stop Company's outstanding common stock. On 08/28/21, Pit sold inventory to Stop in exchange for $650,000 cash. Pit had purchased the inventory on 05/02/21 at a cost of $520,000. On 12/21/21, Stop sold 70% of the inventory to 3rd parties at a cash price of $568,750. The other 30% of the inventory remains on hand at 12/31/21.
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