Eliminated in the consolidation process problem, Accounting Basics

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Eliminated in the consolidation process problem

Prince Corp. owned 80% of Kile Corp.'s common stock. During October 2011, Kile sold merchandise to prince for $140,000. At December 31, 2011, 50% of this merchandise remained in Prince's inventory. For 2011, 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 Dec 31, 2011 that should be eliminated in the consolidation process is:

A. $56,000

B. $22,400

C. $28,000

D. $42,000

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Accounting Basics: Eliminated in the consolidation process problem

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Accounting Basics: Eliminated in the consolidation process problem

Reference No:- TGS069786

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Gain on the sale of the land realized problem

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Request for Solution File

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Accounting Basics: Eliminated in the consolidation process problem

Reference No:- TGS069786

Recent Questions Asked Accounting Basics

Q : Gain on the sale of the land realized problem

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Q : Advantages-disadvantages of statistical sampling methods

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Q : Problem on intra-entity sales as inventory

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