Question
Tower Inc. owns 80% of Yale Co. and applies the equity method. During the current year, Tower bought inventory costing $66,000 and then sold it
Tower Inc. owns 80% of Yale Co. and applies the equity method. During the current year, Tower bought inventory costing $66,000 and then sold it to Yale for $100,000. At year-end, only $24,000 of merchandise was still being held by Yale. What amount of intra-entity inventory profit must be deferred by Tower?
A. $6,482. B. $6,528. C. $7,498. D. $8,160. E $19,200
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College Accounting Chapters 1-30
Authors: John Price, M. David Haddock, Michael Farina
15th edition
1259994975, 125999497X, 1259631117, 978-1259631115
