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tara company owns 80 percent of the common stock of stodd inc. in the current year, tara reports sales of $5,000,000 and cost of goods
tara company owns 80 percent of the common stock of stodd inc. in the current year, tara reports sales of $5,000,000 and cost of goods sold of $3,500,000. for the same period, stodd has sales of $500,000 and cost of good sold of $400,000. during the year, stodd sold merchandise to tara for $40,000 at a price based on the normal markup. at the end of the year, tara still possesses 20 percent of this inventory. prepare the consolidation entry that defers the unrealized gain.
I know the unrealized gain is 1,600. How do i arrive at this number?
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