Company A sold 210,000 in inventory to Frank Co During 20x0 for 280,000. Frank resold 115000 of this merchandise in 20x0 with the remainder to be disposed of during 20x1. Assume Company A owns 26% of Frank Co and applies the equity method.
1) calculate Company A share of the unrealized gain at the end of 20x0.
2) Prepare the journal entries Company A should record at the end of 20x0 to defer the unrealized intra-entity inventory profit.
DATE
Question answered on Jul 22, 2018
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Solution~000447776.zip (18.37 KB)