Q.22

Anderson Company, a 90% owned subsidiary of Phibin Corporation, transfers Inventory to Philbinata 25% gross profit rate. The following data are available pertaining specifically to Philbin's intra entity purchases from Anderson Anderson was acquired on January 1, 2020 Purchases by Philbin Ending inventory on Philbin's books 2020 2021 2022 $8,000 $12,000 $15,000 1,200 4,000 3,000 Assume the equity method is used. The following data are available pertaining to Anderson's income and dividends. 2020 2021 2022 $70,000 $85,000 $94,000 Anderson's net income Dividends paid by Anderson 10,000 10,000 15,000 For consolidation purposes, what amount would be debited to January 1 retained earnings for the 2022 consolidation worksheet entry with regard to the unrecognized intro-entity gross profit remaining in ending inventory with respect to the 2021 Intro-entity transfer of merchandise? Multiple Choice $3,000 con Multiple Choice $3,000 $1,000 O $900 $2.400 $800