K owns 80% of T’s common stock. During October T sold merchandise to K for $250,000. On December 31 40% of this merchandise remains in K’s inventor. Gross profit percentages were 20% for K and 30% for T. What amount of intra-entity gross profit in inventory on December 31 should be eliminated in the consolidation process?

K owns 80% of T’s common stock. During October T sold merchandise to K for $250,000. On December 31 40% of this merchandise remains in K’s inventor. Gross profit percentages were 20% for K and 30% for T. What amount of intra-entity gross profit in inventory on December 31 should be eliminated in the consolidation process?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 4EA: Cheese Partners has decided to close the store. At the date of closing, Cheese Partners had the...

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