Padlock corp owns 90 percent of safeco inc during the year


Padlock Corp. owns 90 percent of Safeco, Inc. During the year, Padlock sold 3,000 locking mechanisms to Safeco for $900,000. By the end of the year, Safeco had sold all but 500 of the locking mechanisms to outside parties. Padlock marks up the cost of its locking mechanisms by 60 percent in computing its sales price to affiliate and non affiliated customers. How much intercompany profit remains in Safeco’s inventory at year-end?

Request for Solution File

Ask an Expert for Answer!!
Financial Accounting: Padlock corp owns 90 percent of safeco inc during the year
Reference No:- TGS01205423

Expected delivery within 24 Hours