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Yukon Co. purchased all of the voting common stock of Ontario Corp. on January 1, 2022 During the year, Yukon made sales of inventory to
Yukon Co. purchased all of the voting common stock of Ontario Corp. on January 1, 2022 During the year, Yukon made sales of inventory to Ontario. The inventory cost Yukon $240,000 and was sold to Ontario for $400,000. Ontario still had 20% of the goods in its inventory at the end of the year. Calculate the amount of unrealized intercompany profit which should be eliminated in the consolidation process at the end of 2022. You will need to calculate the amounts in entries TI and G
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