1. Q Company sold merchandise to their subsidiary, S Company,. That would make the sale $164000. The mark-up on cost is 50%. At year end, 70% of this remains unsold. The tax rate is 40%. What is the before-tax and after-tax unrealized profit in ending inventory? Round your answers to the nearest dollar. Please highlight the after-tax unrealized profit in yellow. (2 marks)
2. R Company has a gross profit rate of 40%. Their tax rate is 24%

R Company sold merchandise to their subsidiary, S Company. Rs cost of goods sold was $200,000. At year-end, S. This would mean they have 40% remaining in inventory. What is the before-tax and after-tax unrealized profit in ending inventory? Round your answers to the nearest dollar. Please highlight the after-tax unrealized profit in yellow. (2 marks)

Calculations followed by

Before-tax unrealized profit and

After-tax unrealized profit