Q.22

Save & E mit Anderson Company, a 90% owned subsidiary of Phibin Corporation, transfers Inventory to Phibint a 25% gross proftrate. 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 nrecognized intra-entity gross profit remaining in ending Inventory with respect to the 2021 intra-entity transfer of merchandise? Multiple Choice O $3,000 Moe Choc $3.000 o S100D 5900 $2.400 $800