Question: The following information is reported in the separate and consolidated balance sheets and income statements of Palace Corp. and its subsidiary, Show Corp., at December 31, 2014:
Additional Information: During 2014, Palace sold goods to Show at the same markup on cost it uses for all sales. At December 31, 2014, Show had not paid for all of these goods and still held 50% of them in inventory
Required: 1. What was the amount of intra-entity sales from Palace to Show during 2014?
2. What was the carrying amount of the inventory that Show purchased from Palace on the December 31, 2014, consolidated balance sheet?
3. How much did Show owe to Palace for intra-entity sales at December 31, 2014?
4. What percent of Show's stock does Palace own?