Luffman inc owns 30 of bruce inc and appropriately applies


Question - Luffman Inc. owns 30% of Bruce Inc. and appropriately applies the equity method. During the current year, Bruce bought inventory costing $52,000 and then sold it to Luffman for $80,000. At year-end, all of the merchandise had been sold by Luffman to other customers. What amount of unrealized intercompany profit must be deferred by Luffman?

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Accounting Basics: Luffman inc owns 30 of bruce inc and appropriately applies
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