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Q13- King Corp. owns 100% of Lee Corp's common stock. During October, Lee sold merchandise to King for $100,000. At December 31, one-half of the
Q13- King Corp. owns 100% of Lee Corp's common stock. During October, Lee sold merchandise to King for $100,000. At December 31, one-half of the merchandise remained in King's inventory. For the year, gross profit as a percentage of sales was 54% for King and 23% for Lee. Calculate the amount of unrealized intercompany profit in ending inventory at December 31 that should be eliminated. Q14- On January 1, Poe Corp. sold a machine for $2,588,000 to Saxe Corp., its wholly-owned subsidiary. Poe paid $1.1 million for this machine, which had accumulated depreciation of $250,000 on the sale date. Poe estimated a $100,000 salvage value and depreciated the machine on the straight-line basis over 20 years, a policy that Saxe continued. In Poe's December 31 consolidated balance sheet, the accumulated depreciation of this machine should be shown on the consolidated balance sheet as what amount? (use a positive number for your answer)
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