Pal Corporation acquired a 60% interest in Sun Corporation on January 1, 2020, at a cost equal to book value and fair value. Sun reports net income of $880,000 for 2020. Sun regularly sells merchandise to Pal at 120% of Sun’s cost. The intercompany sales information for 2020 is as follows: Selling price for intercompany transaction                                   $672,000 Value of inventory unsold by Pal                                                  132,000   Instructions: Determined unrealized profit in Sun as at 31 December 2020 Compute Pal income from Sun as at 31 December 2020

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.