Please provide answer this financial accounting question not use ai Brighton Corporation sold $250,000 in inventory to Creston Ltd. during 20X1 for $350,000.Creston resold $140,000 of this merchandise in 20X1, with the remainder to be sold during20X2.Assume Brighton owns 30% of Creston and applies the equity method.1. Determine Brighton's share of the unrealized gain at the end of 20X1.2. Prepare the journal entry Brighton should record at the end of 20X1 to defer the unrealizedintra-entity inventory profit.

Step 1: Define Unrealized Gain and Equity MethodUnrealized Gain: It represents the profit made on an…

Answered: Brighton Corporation sold $250,000 in…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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