P Company owns 70% of S Company's common stock. During 2020, S sold $800,000 of merchandise to P With a profit margin of 25% of the cost. At December 31, 2016, one-fourth (1/4) of the merchandise remained in P's inventory.. The amount of unrealized inter-company profit that should be eliminated on the work-paper is Select one: O 28000 O 40000 200000

P Company owns 70% of S Company's common stock. During 2020, S sold $800,000 of merchandise to P With a profit margin of 25% of the cost. At December 31, 2016, one-fourth (1/4) of the merchandise remained in P's inventory.. The amount of unrealized inter-company profit that should be eliminated on the work-paper is Select one: O 28000 O 40000 200000

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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Question

P Company owns 70% of S Company's common stock. During 2020, S sold $800,000 of merchandise to P
With a profit margin of 25% of the cost. At December 31, 2016, one-fourth (1/4) of the merchandise
remained in P's inventory.. The amount of unrealized inter-company profit that should be eliminated on
the work-paper is
Select one:
O 28000
O 40000
200000
30000

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