Don't use ai given answer accounting questions Alpha Corp. owns 25% of Beta Inc. and applies the equitymethod. During the year, Alpha sold inventory costing$80,000 to Beta for $150,000. At year-end, Beta still held$30,000 of this merchandise in inventory. What amount ofunrealized gain must be deferred by Alpha?1

Step 1: Definition of Unrealized Gain in Equity MethodUnder the equity method of accounting, when an…

Answered: Alpha Corp. owns 25% of Beta Inc. and…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter22: S Corporations

Section: Chapter Questions

Problem 23CE

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Bowler Inc. owns 30% of Yarby Co. and applies the equity method. During the current year, Bowler bought inventory costing $66,000 and then sold it to Yarby for $120,000. At year-end, only $24,000 of merchandise was still being held by Yarby. What amount of unrealized gain must be deferred by Bowler?
Jubilee, Inc., owns 30 percent of JPW Company and applies the equity method. During the current year, Jubilee buys inventory costing $93,100 and then sells it to JPW for $133,000. At the end of the year, JPW still holds only $21,400 of merchandise. What amount of gross profit must Jubilee defer in reporting this investment using the equity method? Multiple Choice $4,926. $1,926. $12,726. $10,026.
Tara Company owns 30% of Hawkins, Incorporated and applies the equity method. During the current year, Hawkins buys inventory costing $400,000 and sells it to Tara for $500,000. At the end of the year, only 25% of this merchandise is still being held by Tara. What amount of unrealized gain must be deferred by Hawkins in reporting on the equity method?
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Ice Corporation owns 30% of Idea Company and applies the equity method. In 2XX0, Ice Corp. sells merchandise costing $288,000 to Idea for $360,000. Idea's ending inventory includes $60,000 purchased from Ice. Which of the following is the correct equity method entry to record the realization of the gross profit in 2XX1? Select one: O a. O Equity Investment Cost of Goods Sold b. Equity Income Equity Investment C. d. Equity Income Debit Credit 60,000 Equity Investment 3,600 Equity Income Equity Investment 60,000 Debit Credit 3,600 Debit Credit 3,600 3,600 Debit Credit 60,000 60,000
(TCO A) Steven Inc. sold $219,000 in inventory to Thomas Co. during 20X0 for $300,000. Thomas resold $100,000 of this merchandise in 20X0 with the remainder to be disposed of during 20X1.Assume Steven owns 28% of Thomas and applies the equity method.Required:(1) Determine Steven's share of the unrealized gain at the end of 20X0.(2) Prepare the journal entry Steven should record at the end of 20X0 to defer the unrealized intra-entity inventory profit.
A owns 30% of the stock of B. During the year, A sold inventory to B for $ 96,000. A charges a profit of 20% on cost. At the end of the year, B had $ 24,000 of the inventory still on hand. What is the unrealized profit on this sale? (A) $ 1,200 (B) $ 1,440 (C) $ 16,000 (D) $ 19,200
4
Citrus Corporation is a calendar year S corporation with the following current year information: Operating loss Liabilities: Notes payable, Big Apple Bank 60,000 Notes payable, Grapefruit (individual) 40,000 On January 1 Grapefruit bought 60% of Citrus Corporation for $90,000. She then loaned Citrus Corporation $40,000 (the amount above under liabilities). How much of the operating loss may Grapefruit deduct currently? Assume the excess business loss limitation does not apply. O $114,000 $(240,000) O $160,000 O $130,000 $150,000
Ladd, Inc., bought 400 shares of Dey, LLC, for $20 per share and incurred brokerage commissions of $100. Ladd later sold its stake in Dey for $22 per share and incurred brokerage commissions of $175. The effect of the sale on Ladd's net income is a(n) (increase/decrease) of $ .

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Alpha Corp. owns 25% of Beta Inc. and applies the equity method. During the year, Alpha sold inventory costing $80,000 to Beta for $150,000. At year-end, Beta still held $30,000 of this merchandise in inventory. What amount of unrealized gain must be deferred by Alpha? 1