King Corporation owns 80 percent of Lee Corporation s common stock. During October, Lee sold merchandise to King for $205,000. At December 31, 60 percent of this merchandise remains in King s inventor
King Corporation owns 80 percent of Lee Corporation’s common stock. During October, Lee sold merchandise to King for $205,000. At December 31, 60 percent of this merchandise remains in King’s inventory. Gross profit percentages were 30 percent for King and 40 percent for Lee. The amount of unrealized intra-entity profit in ending inventory at December 31 that should be eliminated in the consolidation process is
$49,200.
$36,900.
$82,000.
$39,360.
