Profit in ending inventory-eliminated consolidation process, Accounting Basics

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Profit in ending inventory-eliminated consolidation process

Prince Corp. owned 80% of Kile Corp.'s common stock. During October 2006, Kile sold merchandise to Prince for $140,000. At December 31, 2006, 50% of this merchandise remained in Prince's inventory. For 2006, gross profit percentages were 30% of sales for Prince and 40% of sales for Kile. The amount of unrealized intercompany profit in ending inventory at December 31, 2006 that should be eliminated in the consolidation process is:

a) $28,000

b) $56,000

c) $22,400

d) $42,000

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Accounting Basics: Profit in ending inventory-eliminated consolidation process

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Accounting Basics: Profit in ending inventory-eliminated consolidation process

Reference No:- TGS081472

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

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Accounting Basics: Profit in ending inventory-eliminated consolidation process

Reference No:- TGS081472

Recent Questions Asked Accounting Basics

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