4. Jackson company owns 80% of Canton corporation's common stock during October canceled merchandise to Jackson for $250,000 at December 31, 40% of the merchandise remains in Jackson's inventory gross profit percentage is 120% for Jackson and 30% for Canon the amount of intra- entity gross profit in inventory at December 31 That should be eliminated in the consolidation process is a. Zero b. $24,000, c. $75,000 630.000
4. Jackson company owns 80% of Canton corporation's common stock during October canceled merchandise to Jackson for $250,000 at December 31, 40% of the merchandise remains in Jackson's inventory gross profit percentage is 120% for Jackson and 30% for Canon the amount of intra- entity gross profit in inventory at December 31 That should be eliminated in the consolidation process is a. Zero b. $24,000, c. $75,000 630.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![4. Jackson company owns 80% of Canton corporation's common stock during October canceled merchandise to
Jackson for $250,000 at December 31, 40% of the merchandise remains in Jackson's inventory gross profit
percentage is 120% for Jackson and 30% for Canon the amount of intra- entity gross profit in inventory at
December 31 That should be eliminated in the consolidation process is
a. Zero
b. $24,000,
c. $75,000
d. $30,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa51af6ad-11a5-4544-8b2c-5ebf0b45a8e0%2Fff5f97c1-e324-410a-acc9-31be1ef213f4%2F2eeg41k_processed.png&w=3840&q=75)
Transcribed Image Text:4. Jackson company owns 80% of Canton corporation's common stock during October canceled merchandise to
Jackson for $250,000 at December 31, 40% of the merchandise remains in Jackson's inventory gross profit
percentage is 120% for Jackson and 30% for Canon the amount of intra- entity gross profit in inventory at
December 31 That should be eliminated in the consolidation process is
a. Zero
b. $24,000,
c. $75,000
d. $30,000
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