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please help Apple Co. owns 40% of Pear Inc. During the fiscal year, Pear Inc. sold Inventory to Apple Co. for $800,000 (sales value to
please help
Apple Co. owns 40% of Pear Inc. During the fiscal year, Pear Inc. sold Inventory to Apple Co. for $800,000 (sales value to Pear Inc). Apple Co. is still in possession of 100% of this inventory. Pear Inc. marks up all its sales at 20% above cost. Assume a 20% tax rate. Assuming that Apple Co.'s Investment in Pear Inc qualifies as a portfolio investment what journal entry should be made at the end of the year regarding this intercompany sale? Prepare the entries for both the cost method and equity method of accounting. Apple Co. owns 40% of Pear Inc. During the fiscal year, Pear Inc. sold Inventory to Apple Co. for $800,000 (sales value to Pear Inc). Apple Co. is still in possession of 100% of this inventory. Pear Inc. marks up all its sales at 20% above cost. Assume a 20% tax rate. Assuming that Apple Co.'s Investment in Pear Inc qualifies as a portfolio investment what journal entry should be made at the end of the year regarding this intercompany sale? Prepare the entries for both the cost method and equity method of accountingStep by Step Solution
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